| Consensus | Actual | Previous | |
|---|---|---|---|
| Rate | 6.5% | 6.5% | 6.5% |
Highlights
If the Eurozone labour market is easing, it is doing so only very slowly. Joblessness fell some 94,000 in March, easily more than reversing February's revised 22,000 rise and leaving the unemployment rate steady at a record equalling low of 6.5 percent. The rate was in line with expectations.
As it is, while the steady regional rate reflected no change in Germany (3.2 percent), it masked falls in France (7.3 after 7.4 percent), Italy (7.2 after 7.4 percent) and Spain (11.7 after 11.8 percent).
Today's update should not prevent the ECB lowering key interest rates in June but it will likely promote a more cautious view of how quickly borrowing costs should fall thereafter. The bottom line is that the labour market remains very tight and a clear potential threat to the 2 percent inflation target. More generally, today's update puts the Eurozone RPI at minus 3 and the RPI-P at 8. Broadly speaking, overall economic activity is moving in line with forecasts.
As it is, while the steady regional rate reflected no change in Germany (3.2 percent), it masked falls in France (7.3 after 7.4 percent), Italy (7.2 after 7.4 percent) and Spain (11.7 after 11.8 percent).
Today's update should not prevent the ECB lowering key interest rates in June but it will likely promote a more cautious view of how quickly borrowing costs should fall thereafter. The bottom line is that the labour market remains very tight and a clear potential threat to the 2 percent inflation target. More generally, today's update puts the Eurozone RPI at minus 3 and the RPI-P at 8. Broadly speaking, overall economic activity is moving in line with forecasts.
Market Consensus Before Announcement
Consensus for March's unemployment rate is no change at 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.
