| Consensus | Actual | Previous | |
|---|---|---|---|
| Rate | 6.5% | 6.4% | 6.4% |
Highlights
Not for the first time, the labour market proved surprisingly robust at year-end. Unemployment unexpectedly fell again, this time by 17,000 following an unrevised 99,000 drop in November. The latest decrease left the headline jobless rate at 6.4 percent, a tick below the market consensus and still matching its record low.
The stable overall rate reflected no change in both France (7.3 percent) and Germany (3.1 percent) but masked falls in Italy (7.2 percent after 7.4 percent) and Spain (11.7 percent after 11.8 percent).
The ongoing tightness of the Eurozone labour market will worry the ECB's hawks, especially with key wage negotiations currently taking place across much of the region. To this end, today's update further reduces the likelihood of a cut in the central bank's interest rates next month. That said, the data put the Eurozone RPI at 4 and the RPI-P at 5, both readings showing overall economic activity performing much as expected.
The stable overall rate reflected no change in both France (7.3 percent) and Germany (3.1 percent) but masked falls in Italy (7.2 percent after 7.4 percent) and Spain (11.7 percent after 11.8 percent).
The ongoing tightness of the Eurozone labour market will worry the ECB's hawks, especially with key wage negotiations currently taking place across much of the region. To this end, today's update further reduces the likelihood of a cut in the central bank's interest rates next month. That said, the data put the Eurozone RPI at 4 and the RPI-P at 5, both readings showing overall economic activity performing much as expected.
Market Consensus Before Announcement
Consensus for December's unemployment rate is a 1 tenth rise to 6.5 percent. Unemployment in the Eurozone has been running at record lows.
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.
