Stanley Pignal
Unemployment in the eurozone reached a new record last month, in a further sign of the currency bloc?s faltering economic recovery.
Joblessness in the 17 countries that use the euro rose to 10.4 per cent at year end, according to seasonally-adjusted data from the European Union?s statistical arm. The 0.1 percentage point increase from November?s estimate compares to an unemployment rate of 9.5 per cent a year earlier.
A small fall in Germany, from 5.6 to 5.5 per cent, was offset by rises in much of the debt-laden periphery of the eurozone, including a 0.4 percentage point rise in Portugal to 13.6 per cent.
Youth unemployment unexpectedly fell 0.1 percentage points, although it remains more than twice the overall jobless rate at 21.3 per cent.
National data from Germany – also out on Tuesday – showed a larger-than-expected drop in joblessness in January, from 6.8 per cent to 6.7 per cent, the lowest level since reunification in 1991.
The deteriorating employment situation – particularly youth unemployment – has become a key focus for policymakers, featuring prominently at the World Economic Forum in Davos and during Monday?s summit of European Union leaders.