ROBUST GROWTH in the euro zone in the second quarter failed to dent its near-record unemployment rate, which remained flat for a fourth consecutive month in July.
The 10 per cent overall euro zone figure again masked a chasm between the “core” economies led by Germany, which are doing well, and those in the “peripheral” group, which continue to struggle.
Germany’s seasonally-adjusted unemployment rate, as measured by the European Commission’s statistical arm, remained flat at 6.9 per cent in July, below its own pre-crisis levels.
By contrast, Spain’s unemployment rate nudged up to 20.3 per cent, the highest figure seen in a euro zone country since the single currency was introduced in 1999; 41.5 per cent of young people there are now looking for work, compared with 19.6 per cent across Europe.
Joblessness in Ireland also rose, from 13.3 per cent to 13.6 per cent, but fell in Portugal from 11 per cent to 10.8 per cent. Greece no longer releases monthly data. France remained flat at 10 per cent, and Italy fell 0.1 points to 8.4 per cent.
The German government simultaneously unveiled its first estimates for August unemployment, which showed a continuing slow decline with a seasonally-adjusted drop of 17,000 to 3.19 million, leaving the jobless rate constant at 7.6 per cent. The figure was greeted by economic analysts as confirmation of the resilience of Germany’s export-driven economic recovery. – ( Copyright The Financial Times Limited 2010)
