| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Rate | 6.3% | 6.3% to 6.4% | 6.3% | 6.3% |
Highlights
Eurozone unemployment fell just 3,000 to 10.841 million in October. Year-over-year, the decrease was a more pronounced 411,000 and with the unemployment rate unchanged at September's 6.3 percent, a record low, this latest update suggests that the labour market is tight, albeit stabilsing. The outcome was in line with the market consensus
Amongst the larger Eurozone countries, the national unemployment rate rose in France (7.6 percent after 7.5 percent), while it decreased in Italy (5.8 percent after 6.0 percent), but was stable in both Germany (3.4 percent) and Spain (11.2 percent).
October's labour market developments leave joblessness historically low and will probably ensure that at least some members on the ECB's General Council remain cautious about the pace of interest rate cuts going forward. A 25 basis point cut remains probable in December and a larger ease less so. The focus on wages will be sharp. Today's report puts the Eurozone RPI at minus 23 and the RPI-P at minus 15, both gauges showing overall economic activity running somewhat behind market expectations.
Amongst the larger Eurozone countries, the national unemployment rate rose in France (7.6 percent after 7.5 percent), while it decreased in Italy (5.8 percent after 6.0 percent), but was stable in both Germany (3.4 percent) and Spain (11.2 percent).
October's labour market developments leave joblessness historically low and will probably ensure that at least some members on the ECB's General Council remain cautious about the pace of interest rate cuts going forward. A 25 basis point cut remains probable in December and a larger ease less so. The focus on wages will be sharp. Today's report puts the Eurozone RPI at minus 23 and the RPI-P at minus 15, both gauges showing overall economic activity running somewhat behind market expectations.
Market Consensus Before Announcement
Eurozone unemployment is expected to hold steady at 6.3 percent in October after no change in September.
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.
