| Consensus | Actual | Previous | |
|---|---|---|---|
| Rate | 6.4% | 6.5% | 6.4% |
Highlights
Unemployment rose from August's record low, suggesting that the European Central Bank's unprecedented tightening cycle may be feeding through to the real economy.
Joblessness increased to 6.5 percent in September from 6.4 percent a month earlier, exceeding the consensus forecast, but remaining well below the 6.7 percent touched a year earlier. Unemployment rolls in the bloc rose by 69,000, according to Eurostat.
European policy makers have been poised for a slackening of the labour market, which has remained remarkably resilient in the face of hefty rate hikes. Earlier this week, European Central Bank Vice President Luis de Guindos noted that fewer new jobs are being created, even in the previously resilient service sector.
While the jobless rate matches the level of July, the latest rise in unemployment will provide more fodder for the market's belief that the ECB has reached the end of its tightening cycle after leaving rates on hold at last week's governing council meeting.
The data take the eurozone RPI to minus 18 and the RPI-P to minus 16, indicating that the eurozone economy has been underperforming market expectations of late.
Joblessness increased to 6.5 percent in September from 6.4 percent a month earlier, exceeding the consensus forecast, but remaining well below the 6.7 percent touched a year earlier. Unemployment rolls in the bloc rose by 69,000, according to Eurostat.
European policy makers have been poised for a slackening of the labour market, which has remained remarkably resilient in the face of hefty rate hikes. Earlier this week, European Central Bank Vice President Luis de Guindos noted that fewer new jobs are being created, even in the previously resilient service sector.
While the jobless rate matches the level of July, the latest rise in unemployment will provide more fodder for the market's belief that the ECB has reached the end of its tightening cycle after leaving rates on hold at last week's governing council meeting.
The data take the eurozone RPI to minus 18 and the RPI-P to minus 16, indicating that the eurozone economy has been underperforming market expectations of late.
Market Consensus Before Announcement
Consensus for September'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.
