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Eurozone’s unemployment rate lowest since 2009

The average unemployment rate in the Eurozone has reached 8,7% in November 2017 – according to Eurostat. It’s the lowest level since January 2009 and the global crisis. Biggest drops have been recorded in Greece and Portugal.

 Positive employment data and low inflation

According to Eurostat, EU’s official statistics agency, Eurozone’s unemployment fell by more than 107 thousand in November 2017 and as a result – overall number of Eurozone’s jobless fell to 14,2 million. The highest rate of unemployment is in Greece – which despite recent significant drops – still remains above 20%. Also, number of people seeking work in Spain remains on a relatively high level of 16,7%. On the other hand, only 3,6% of population remain without work in Malta and in Germany (and 2,5% in the non-Eurozone Czech Republic).

The Eurostat’s figures show that despitethe strength of the labor market,Eurozone’s inflation remain at a permanently low level of 1,4% (data for December) – a way below 2% target for 2017. The low inflation – as mentioned by Mario Draghi [quoted after Euronews] – may influence ECB to keep the interest rates on a continuously low level and hence –to prolong the “cheap money era”. If that is the case the monetary stimulation of the Eurozone’s labor market is likely to continue.

German labor market booming

More than 600 thousand jobs were created in 2017 in Germany, EU’s largest economy. According to the German Federal Office of Statistics, Germany’s unemployment rate has been decreasing for the last 12 months in a row. The major grows in job creation were in the service sector as well as in manufacturing and construction.