10.3% Fall In Unemployment Recorded In Eurozone

It says that the number of unemployed fell by 105,000 during the month to a total of 16.65 million.

This is slightly better than the consensus of analysts surveyed by the financial services provider Factset, who had forecast 10.4%, the same rate as in December.

LONDON (AP) — One bright spot in an otherwise somber economic picture for the 19-country eurozone has been the consistent fall in the ranks of the unemployed.

The drop in business confidence, coupled with the return of deflation in bloc, increases the likelihood that the European Central Bank will announce further stimulus measures when policymakers meet later this month.

“Despite January’s decline, the eurozone’s unemployment rate remains too high to generate meaningful inflationary pressure – It is still well above the 1999-2007 average of 8.8 percent”, Allen said.

The youth unemployment rate slid marginally to 22 percent from 22.1 percent in December. The trend continued in January, when the jobless rate fell to a near four and a half-year low. Prices are falling even in Germany, showing how anemic inflation pressures are in the eurozone despite the fall in unemployment.

At the same time the euro area (EA19) seasonally-adjusted unemployment rate was recorded at 10.3% in January 2016, down from 10.4% in December 2015, and from 11.3% in January 2015.

Data from the Federal Labor Agency today showed that Germany’s unemployment declined for the fifth consecutive month in February.

Elsewhere, Italy’s unemployment rate logged a surprise decline at the start of the year, preliminary data from the statistical office ISTAT showed Tuesday.

The largest decreases were registered in Spain (from 23.4% to 20.5%), Slovakia (from 12.3% to 10.3%), Ireland (from 10.1% to 8.6%) and Portugal (from 13.7% to 12.2%). The unemployment rate remained unchanged at 6.2 percent, the post-reunification low.

Meanwhile, the youth unemployment rate, which applies to the 15-24 group, climbed to 39.3 percent from 38.7 percent.

Joblessness in the euro zone dropped to 10.3% in January from 10.4% in December its lowest rate since August 2011


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