Article by AlgosysFx
The number of people unemployed across the 17 countries that use the Euro hit a record high in June, a stark reminder that Europe’s debt crisis has ramifications beyond the financial markets. Eurostat, the European Union’s statistics office, reported that 17.801 Million people were out of work in the Euro Zone in June. That was 123,000 more than in May and is the highest level since the Euro was formed in 1999. The monthly increase was the 14th in a row and means that about 2.25 Million people have lost their jobs since April 2011. Despite the increase, unemployment on a seasonally adjusted basis in June remained unchanged at a record 11.2 percent, three percentage points higher than the US’s equivalent 8.2 percent. Europe’s Unemployment Rate for May had originally been estimated at 11.1 percent.
Spain, which is at the forefront of Europe’s debt crisis concerns, had the highest Unemployment Rate across the Euro area of 24.8 percent. Greece’s jobless rate was not far behind at 22.5 percent, although the latest figures available were for April. Many countries that use the Euro, including France and Italy, also have double-digit Unemployment Rates. Germany, Europe’s biggest economy, continues to fare far better, and its rate, according to Eurostat, dropped to 5.4 percent in June from the previous month’s 5.5 percent, but analysts believe that the powerhouse will soon start to see rising Jobless Rates.
Nonetheless, hopes have risen over the past week that Europe is preparing new measures to handle the crisis. Last week, European Central Bank president Mario Draghi said the bank is ready to do what it takes to preserve the Euro. Those comments raised expectations that, at the very least, the ECB is likely to ramp up its bond-buying program in the hope of keeping a lid on Spanish and Italian borrowing rates.
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