'Bleak milestone' as eurozone unemployment hits 12%
Euro falls as predictions of recovery confounded by record joblessness in first two months of year
UNEMPLOYMENT in the eurozone hit 12 per cent in the first two months of the year, a record level described by analysts as "another bleak milestone".
The jobless rate in the 17 member countries that have adopted the euro as their currency rose to 12 per cent in February, and the January figure was revised up to the same level, from the 11.9 per cent estimated earlier. A total of 19.07 million people were out of work in the eurozone in February, a rise of 33,000, the Eurostat agency said.
The 22nd increase in unemployment in a row means the current labour market downturn in the eurozone is the most prolonged since the early 1990s. Across the wider, 27-country EU the total number of jobless stands at 26.3m, which is also a record.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The bad unemployment numbers, and the suggestion the eurozone is struggling to emerge from recession, caused the euro to fall against the majority of its 16 most-traded peers today.
The Guardian said the latest unemployment figures show predictions that the eurozone economies would stage a recovery this year appear to be "woefully wide of the mark". Instead, the continent seems to be "locked into a spiral of declining manufacturing output and rising unemployment".
Greece was the worst hit with a jobless rate of 26.4 per cent, closely followed by Spain, where 26.3 per cent of the work force was unemployed in January and February. Austria and Germany continue to lead the eurozone in terms of employment, with just 4.8 per cent and 5.4 per cent out of work respectively.
Europeans have been "transfixed" by the financial meltdown in Cyprus, but burgeoning unemployment in the eurozone is a "potentially bigger crisis", says the New York Times. It also stands in "stark contrast" to the US, where unemployment in February declined to 7.7 per cent, the lowest level since late 2008.
Mark Cliffe, chief economist at ING Group, told the paper that spending cuts and tax increases designed to cut debt in "bailed-out eurozone countries" were "feeding off" rising jobless rates. "It's a bit of a vicious circle," he said. "Europe is pursuing a policy that is self-evidently failing."
Analysts say the short-term economic outlook remains bleak, reports the BBC, because many governments are continuing to "cut spending and raise taxes as they struggle to control high deficits and rising debt levels".
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - November 2, 2024
Cartoons Saturday's cartoons - anti-fascism, early voter turnout, and more
By The Week US Published
-
Geoff Capes obituary: shot-putter who became the World’s Strongest Man
In the Spotlight The 'mighty figure' was a two-time Commonwealth Champion and world-record holder
By The Week UK Published
-
Israel attacks Iran: a 'limited' retaliation
Talking Point Iran's humiliated leaders must decide how to respond to Netanyahu's measured strike
By The Week UK Published
-
'Brain drain' fear as record numbers leave New Zealand
Under The Radar Neighbouring Australia is luring young workers with prospect of better jobs
By Chas Newkey-Burden, The Week UK Published
-
Are we getting a 'hard landing' after all?
Today's Big Question Signs of economic slowdown raise concerns 'soft landing' declarations were premature
By Joel Mathis, The Week US Published
-
How the world economy learned to live with the drama
Under the Radar As economists predict a 'soft landing' after recent crises, is the global economy now 'oblivious to the new world disorder'?
By Elliott Goat, The Week UK Published
-
Could Fed interest rate cuts tip the election?
Talking Points The central bank could make interest rate cuts during a campaign focused on the economy
By Harold Maass, The Week US Published
-
How long can consumers keep the economy humming?
Talking Points Consumers boosted growth, defying recession warnings. The question is whether 2024 will be different.
By Harold Maass, The Week US Published
-
How did America avoid a recession in 2023?
Today's Big Question A downturn was inevitable. Until it wasn't.
By Joel Mathis, The Week US Published
-
Will the UK economy bounce back in 2024?
Today's Big Question Fears of recession follow warning that the West is 'sleepwalking into economic catastrophe'
By Chas Newkey-Burden, The Week UK Published
-
Inflation vs. deflation: which is worse for national economies?
Today's Big Question Lower prices may be good news for households but prolonged deflation is ‘terrible for the economy’
By The Week Staff Published