| Consensus | Actual | Previous | |
|---|---|---|---|
| Rate | 6.5% | 6.4% | 6.5% |
Highlights
Joblessness fell in July. A 14,000 decline followed a revised 3,000 drop in June and reduced the jobless rate to 6.4 percent, a tick short of the market consensus and, courtesy of earlier revisions, a new record low.
However, for most of the larger Eurozone countries, the market was more stable and national rates were only flat in France (7.5 percent), Germany (3.4 percent) and Spain (11.5 percent). Italy (6.5 percent after 6.9 percent) essentially accounted for the dip in the overall rate.
Even so, the July data provide the ECB with a fresh warning about the lack of slack in the region's labour market. As such, it will make wage developments all the more important to upcoming policy decisions. Today's updates put the Eurozone RPI at 14 and the RPI-P at 22, both gauges showing overall economic activity running slightly ahead of market expectations.
However, for most of the larger Eurozone countries, the market was more stable and national rates were only flat in France (7.5 percent), Germany (3.4 percent) and Spain (11.5 percent). Italy (6.5 percent after 6.9 percent) essentially accounted for the dip in the overall rate.
Even so, the July data provide the ECB with a fresh warning about the lack of slack in the region's labour market. As such, it will make wage developments all the more important to upcoming policy decisions. Today's updates put the Eurozone RPI at 14 and the RPI-P at 22, both gauges showing overall economic activity running slightly ahead of market expectations.
Market Consensus Before Announcement
Consensus for July's unemployment rate is no change at June's 6.5 percent. The Eurozone labour market has been very tight.
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.
