| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Rate | 6.4% | 6.4% | 6.4% | 6.5% |
Highlights
The Eurozone labour tightened in August. Following an upwardly revised 89,000 jump in July, the mid-quarter month saw a hefty 107,000 decline that reduced the number of people out of work to 10.856 million, a new record low. As a result, the unemployment rate dipped from an upwardly amended 6.5 percent to 6.4 percent, matching both the market consensus and June's all-time low.
Regionally, the national rate fell in France (7.3 percent after 7.4 percent), Italy (7.3 percent after 7.5 percent) and Spain (11.5 percent after 11.6 percent) and was again flat in Germany (3.0 percent).
The August update shows that the overall Eurozone labour market remains very tight. This will worry the ECB's hawks and increases the likelihood of the first cut in official interest rates being deferred until well into 2024. The Eurozone RPI now stands at 2 and the RPI-P at 19. Economic activity in general is performing much as expected but the real economy is running slightly hotter than market expectations.
Regionally, the national rate fell in France (7.3 percent after 7.4 percent), Italy (7.3 percent after 7.5 percent) and Spain (11.5 percent after 11.6 percent) and was again flat in Germany (3.0 percent).
The August update shows that the overall Eurozone labour market remains very tight. This will worry the ECB's hawks and increases the likelihood of the first cut in official interest rates being deferred until well into 2024. The Eurozone RPI now stands at 2 and the RPI-P at 19. Economic activity in general is performing much as expected but the real economy is running slightly hotter than market expectations.
Market Consensus Before Announcement
Consensus for August's unemployment rate is no change at 6.4 percent.
Definition
The unemployment rate measures the number of unemployed as a percentage of the labor force.
Description
Unemployment data are closely monitored by the financial markets. These data give a comprehensive report on the state of the economy and its future direction. A rising unemployment rate can be a warning sign of hard times while a low rate can be a warning of inflation as wages are bid up to attract labor.
Unemployment data are expressed in both a numerical value and as a percentage of the labor force. Generally, the definition of those unemployed follows that of the International Labour Organisation (ILO). It states that an unemployed person is one between the ages of 15 to 74 years of age who was not employed during the reference week, had actively sought work during the past four weeks and was ready to begin working immediately or within two weeks. The unemployment rate is the percentage of unemployed persons over the total number of active persons in the labor market. Active persons are those who are either employed or unemployed.
Eurostat provides an unemployment rate for each EU country as well as for the EMU and EU as a whole. It should be noted that the unemployment rate for a country will frequently differ with that reported by the national statistics agency. That is because of the varying interpretations of the ILO definition by member states and Eurostat.
Unemployment data are expressed in both a numerical value and as a percentage of the labor force. Generally, the definition of those unemployed follows that of the International Labour Organisation (ILO). It states that an unemployed person is one between the ages of 15 to 74 years of age who was not employed during the reference week, had actively sought work during the past four weeks and was ready to begin working immediately or within two weeks. The unemployment rate is the percentage of unemployed persons over the total number of active persons in the labor market. Active persons are those who are either employed or unemployed.
Eurostat provides an unemployment rate for each EU country as well as for the EMU and EU as a whole. It should be noted that the unemployment rate for a country will frequently differ with that reported by the national statistics agency. That is because of the varying interpretations of the ILO definition by member states and Eurostat.
