| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Rate | 6.4% | 6.5% | 6.4% | 6.5% |
Highlights
The Eurozone labour market lost a little ground in February. Although at 6.5 percent, the jobless rate was unchanged on the month it followed an upward revision to January and masked a 17,000 increase in unemployment to 11.102 million, a 3-month high. The rate was also a tick above the consensus. All that said, the labour market remains historically very tight.
The steady overall rate reflected no change in Germany (3.2 percent) but concealed falls in France (7.4 after 7.5 percent) and Spain (11.5 after 11.6 percent) and a rise in Italy (7.5 after 7.3 percent).
The ECB will welcome the tentative signs that the Eurozone labour market is finally beginning to cool. However, it will still be concerned that it remains tight enough to support potentially inflationary wage increases. To this end, it will want to see updated wage data before delivering the June cut in key interest rates that financial markets currently fully discount.
The steady overall rate reflected no change in Germany (3.2 percent) but concealed falls in France (7.4 after 7.5 percent) and Spain (11.5 after 11.6 percent) and a rise in Italy (7.5 after 7.3 percent).
The ECB will welcome the tentative signs that the Eurozone labour market is finally beginning to cool. However, it will still be concerned that it remains tight enough to support potentially inflationary wage increases. To this end, it will want to see updated wage data before delivering the June cut in key interest rates that financial markets currently fully discount.
Market Consensus Before Announcement
Consensus for February's unemployment rate is no change at 6.4 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.
