Unemployment in the eurozone returned in November to its lowest since statistics existed, beginning in April 1998, according to data published this Tuesday by Eurostat. The unemployment rate in the region remained at 6.4%, one tenth less than in October, a historic figure that was already seen in June. In total there are 10.97 million unemployed in the euro zone, 99,000 fewer people, the largest drop since August.
Spain is, by far, the one with the most unemployment (11.9%) and the most unemployed (2.86 million). In neighboring countries the figures are lower: Germany has unemployment of 3.1%, France 7.3%, Italy 7.5% and Portugal 6.6%. Only Greece comes close, with 9.4% unemployment.
At the EU level, unemployment is 5.9%, one tenth lower than October. It is another historic low that already occurred last May. With 12.95 million unemployed, 144,000 less in one month, unemployment has maintained a positive trend in the recovery that has followed the covid crisis, which caused a historic recession. It has also resisted the stalemate caused by the invasion of Ukraine.
“The fall was mainly due to a drop in the Italian unemployment rate, as well as a marginal decrease in the measure for Spain, while in Germany and France the unemployment rate remained stable,” said Mateusz Urban, economist at Oxford Economics.
In the EU as a whole, the lowest unemployment rate is found in the Czech Republic (2.4%), Malta (2.5%) and Germany (3.1%). Looking ahead to the coming quarters, “a significant increase in the unemployment rate does not seem to be in sight,” ING analysts point out. It will serve to support consumption, but at the same time the European Central Bank (ECB) will have to be attentive to the wage increases agreed upon in its rate strategy, the entity warns.
The figures show the resilience of the labor market despite the decline in economic growth. The euro zone saw its economy contract in the third quarter of 2023, weighed down by Germany’s difficulties and rising interest rates. Many analysts expect a new drop in gross domestic product (GDP) in the last three months of the year, which would mean a technical recession.
