| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Rate | 6.4% | 6.4% to 6.4% | 6.3% | 6.4% | 6.3% |
Highlights
Joblessness rose 13,000 to 10.884 million in September. However, with August's fall being revised to a steeper 101,000 the increase only left the unemployment rate at the previous month's downwardly revised 6.3 percent, itself a new record low. The data show the labour market still tighter than expected.
Amongst the larger Eurozone countries, the national unemployment rate rose in France (7.6 percent after 7.5 percent) but was stable in both Germany (3.5 percent) and Italy (6.1 percent) and continued to decline in Spain (11.2 percent after 11.3 percent).
The latest labour market developments will probably leave at least some members on the ECB's General Council more cautious about lowering interest rates again this year. A 25 basis point cut remains probable in December but a larger ease now looks less likely and the focus on wages will be all the sharper. Today's reports lift the Eurozone RPI to 22 and the RPI-P to 12, both gauges showing overall economic activity running slightly ahead of market expectations.
Amongst the larger Eurozone countries, the national unemployment rate rose in France (7.6 percent after 7.5 percent) but was stable in both Germany (3.5 percent) and Italy (6.1 percent) and continued to decline in Spain (11.2 percent after 11.3 percent).
The latest labour market developments will probably leave at least some members on the ECB's General Council more cautious about lowering interest rates again this year. A 25 basis point cut remains probable in December but a larger ease now looks less likely and the focus on wages will be all the sharper. Today's reports lift the Eurozone RPI to 22 and the RPI-P to 12, both gauges showing overall economic activity running slightly ahead of market expectations.
Market Consensus Before Announcement
No change expected in Eurozone unemployment 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.
