Grim Record as Eurozone Jobless Soars to 18.2 Million

Oct. 1, 2012
Spain had the highest unemployment rate in August, 25.1% for all adults, and 52.9% for under-25s.

Showing an annual rise of well over two million for the recession-stricken single currency area, jobless numbers hit a grim record of 18.2 million across the eurozone in August.

After a sharp revision to July figures, official European Union data on Monday highlighted the damage caused by the debt crisis and left analysts tipping many more job losses ahead as the economy slumps.

The gloomy 18,196,000 headline unemployment figure for August released by Eurostat was the highest since records began in 1995 and equated to a massive jump of 2,144,000 in the last 12 months.

The data also made clear how much worse the eurozone is faring relative to the rest of the 27-state European Union, a single market which includes major economies Britain and Poland.

Spain had the highest unemployment rate in August, 25.1% for all adults, and 52.9% for under-25s.

Greece posted the highest youth unemployment rate -- 55.4% -- and was only narrowly behind Spain overall with 24.4% of adults out of work.

Germany's rate was 5.5%, with neighboring Austria recording the lowest at 4.5%.

"Compared with August 2011, unemployment rose by 2.170 million in the EU 27 and by 2.144 million in the euro area," Eurostat said.

Need for Urgent Action

That almost the entire annual increase for the full bloc was accounted for by the gain in the eurozone alone showed a need for urgent action, the European Commission.

Spokesman Jonathan Todd said the EU executive was concerned that "member states' employment and social situations are starting to diverge," and that the EU had to now "give priority to job creation" measures.

Officials had previously warned that eurozone jobless levels were becoming "critical" and would pose a serious threat to social cohesion without action.

In recent weeks, Spain, Portugal and Greece have all faced mounting street protests against government austerity programs, with the fresh tensions stoking calls for more autonomy or even independence, as in Catalonia.

Eurostat said the August unemployment rate of 11.4% was stable compared to July, with just a 34,000 increase.

However, the July figures were revised radically upwards to add 160,000 to the jobless count for that month, giving the same 11.4 percent unemployment rate, a Eurostat spokesman said.

There were some 25,466,000 out of work in the full EU 27, giving an unemployment rate of 10.5%, flat with July which was revised up to the same figure from the initially given 10.4%.

The eurozone is faring far worse than its main international economic rivals. Japan's unemployment rate was 4.1% in August according to Eurostat, which uses complicated data modeling to draw comparisons, while the United States was at 8.1%.

The eurozone economy shrank by 0.2 percent between April and June, after flat growth in the first quarter, and analysts see a recession for the third, with no recovery in sight.

September's Purchasing Managers Index (PMI), a survey of thousands of eurozone manufacturers compiled by Markit research firm and seen as a reliable growth indicator, marked a 14th negative month in a row.

"The rise in eurozone unemployment in August, coupled with the still low level of the manufacturing PMI, adds to the evidence that the region is in a deepening and broadening recession," said Jennifer McKeown of Capital Economics.

- Roddy Thomson, AFP

Copyright Agence France-Presse, 2012

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2024. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!