Europe’s recovery strengthens, unemployment at 8-year low
BRUSSELS: Europe’s economic recovery is strengthening with unemployment in the eurozone dropping in June to its lowest since February 2009, according to released official figures.
The jobless rate of 9.1 per cent was better than predicted by analysts and will boost confidence that the 19-nation single currency area’s pick-up is gathering steam after the financial crisis.
Inflation in July however remained well below the European Central Bank’s target, meaning that it is likely to carry on for now with its massive economic stimulus policy and low interest rates.
The inflation rate in particular was “very subdued”, said Jennifer McKeown of Capital Economics.
“While June’s unemployment data paint a positive picture of the eurozone labour market, July’s (inflation) release confirms that this strength has yet to generate inflationary pressure,” McKeown said.
The figures come a week after the IMF said the eurozone economic recovery was broad and strengthening, but warned that low inflation, fragile banks and Brexit remained significant risks.
The Eurostat statistics agency said unemployment fell to 9.1 per cent in June compared to a revised 9.2 per cent in May.
That was slightly better than the 9.2 per cent predicted by analysts surveyed for data company Factset.
“This is the lowest rate recorded in the euro area since February 2009,” Eurostat said in a statement, when the European economy was still in the doldrums after the global financial crisis.
The highest unemployment rates were in struggling Greece, at 21.7 per cent, and Spain at 17.1 per cent.
Unemployment across the 28nation EU was meanwhile stable at 7.7 per cent in June, the lowest rate for the bloc since December 2008. — AFP