Eurozone Unemployment Hits New Record High

Eurozone Unemployment Hits New Record HighBy PAN PYLAS

LONDON -- Unemployment in the 17-country euro currency bloc hit another record in May as the crippling financial crisis pushed the continent toward the brink of recession, official figures showed Monday.

Eurostat, the EU's statistics office, said unemployment rose to 11.1% in May from 11% the previous month. May's rate was the highest since the euro was launched in 1999 and adds further urgency to the eurozone countries' plan to create economic growth and cut excessive government debt.

At a summit last Friday, eurozone leaders agreed a set of short- and long-term measures to shore up the euro and unveiled a limited economic growth package. Markets have responded positively with a stock market rally which, if sustained, should help buoy economic confidence in the eurozone - a key step to easing the crisis.

But the unemployment data highlighted the extent of the challenge facing European leaders.

May's unemployment rate compares badly with an unemployment rate of 8.2% in the United States and 4.4% in Japan, and is expected to rise further in the coming months as the eurozone economy is forecast to slide back into recession this year.

In total, 17.6 million people were out of work in the eurozone in May, up 88,000 on the month before and 1.8 million more than the level a year earlier.

"The numbers ... indicate ongoing labour market weakness, with further deterioration highly likely in the second half of the year," said Ashley James, senior European economist at RBC Capital Markets.

Unemployment has been edging higher for over a year as concerns over the debt crisis and the future of the euro currency have weighed on economic activity. Businesses have been cutting jobs or delaying hiring as confidence in the economy waned, while many governments have pursued austerity programs, including big job reductions in the public sector.

There are huge disparities across the eurozone, however.

The labor markets of those countries at the front line of the debt crisis, such as Greece and Spain, are suffering most due to their governments' stringent austerity measures and deep recessions. The highest unemployment rate across the eurozone was recorded in Spain, where 24.6% of people were out of work in May. Even more dramatically, 52.1% of the country's youth were unemployed. Greece's youth unemployment rate also stands at 52.1% at last count in March.

"EU policymakers and stakeholders are aware of this potential catastrophe of creating a lost generation, but so far appear powerless to halt the rising jobless figures among young people," said Andrea Broughton, principal research fellow at the Institute for Employment Studies in London.

"This is a huge problem to tackle, but it is essential that young people are encouraged to develop skills that are in demand and that they are given the chance to obtain meaningful work experience that enables them to gain a foothold in the labour market," Broughton added.

Other countries in the eurozone, particularly those in the north, are faring better. Germany's unemployment rate stood at only 5.6%. And its youth unemployment rate stood at only 7.9%, markedly lower than the more than one in two unemployed in both Greece and Spain.

However, a raft of economic indicators in recent weeks have shown that Europe's biggest economy is not immune to the problems in the rest of the region. Germany's exports to other countries in the eurozone are under pressure and business confidence is waning.

Across the wider 27-country European Union, which includes non-euro countries such as Britain and Poland, unemployment edged up to 10.3% in May from 10.2% the month before.

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n5monthsocrapleft

TODAY WE HAVE RECORD UNEMPLOYMENT WITH UNEMPLOYMENT ON THE RISE~~RECORD FORECLOSURES~~RECORD JOB LOSSES~~ N 23 MILLION AMERICANS "STILL" OUT OF WORK. !

July 03 2012 at 9:57 PM Report abuse +1 rate up rate down Reply
bchrist751

When a country needs economic growth... You Do Not elected a Socialist government!

July 03 2012 at 10:58 AM Report abuse +2 rate up rate down Reply
mily469

today we have one job available in america for every 3 people out of work. and some blame the unemployed for being out of work. think about that. and you go out and look for work today and tell us how easy it is and how much of a living wage you got. go ahead...we are waiting for you to tell us about your exoerience.

July 03 2012 at 9:04 AM Report abuse -1 rate up rate down Reply
ed27th

Somebody might want to clue the progressives in on this one.

July 03 2012 at 8:38 AM Report abuse rate up rate down Reply
talari

Let's print another 5 trillion and hand out some more bailouts.... It won't matter now.

July 03 2012 at 1:23 AM Report abuse +2 rate up rate down Reply
1 reply to talari's comment
bchrist751

But Obama says the private sector is GoooooING! Fine! $9.95 seems to be a good wage these days , If you can even find a Job that pays that much...... Thanks Obama!

July 03 2012 at 11:01 AM Report abuse +3 rate up rate down Reply
Setanta

where have all the juniour komrads gone ?
new scripts are delayed ?
maybe they'll restart their war on free speech ?
or does the dimOgenic scatology continue in the form of reruns on limbO,palin and buuuuuush ?
and where has saNDRA_ flUkes gone ? you remember ? and it is not PRONOUNCED like the fish ? pelousey/maloney's poster CHILD ??? where'd she go ?

eh libtards and left_hits--how'd THOSE BOYCOTTS GO ?
fizzled out before they even started......

July 03 2012 at 12:28 AM Report abuse -4 rate up rate down Reply
Setanta

so WHERE THE HECK is fake economic s gone ? repeated the QUESTION THREE TMES......and never bothered to check back-

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
fakeconomics1
Do you have guts to admit that both DEMS and GOPPERS are addicted campaign "BRIBES"--and where you stand on that issue?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LM@O ! oooooooooooh fake1,where have you been ?
the actions of roBerts and the sprEme beings RESULTED IN A ONE ISSUE ELECTION.

July 02 2012 at 10:37 PM Report abuse -2 rate up rate down Reply
Setanta

in the land of the eurO--11% unemployment is natural.....and THEY are well used to IT.

July 02 2012 at 9:48 PM Report abuse -2 rate up rate down Reply
gbaker9916

Headed to a state near you very soon.

July 02 2012 at 9:31 PM Report abuse -3 rate up rate down Reply
goodlucktu

come to america spain, the doors are wide open.. just look at the picture above.. he does'n't want your love he wants your poor, your sick and beat up masses...

July 02 2012 at 8:41 PM Report abuse +2 rate up rate down Reply