EU-25 UNEMPLOYMENT RATE AT 9.1 PERCENT

UNCLAS SECTION 01 OF 02 BRUSSELS 002365

SIPDIS

DOL FOR BLS AND ILAB
TREASURY FOR IMI
STATE FOR DRL/IL

E.O. 12958: N/A
TAGS: ELAB EUN USEU BRUSSELS
SUBJECT: EU-25 UNEMPLOYMENT RATE AT 9.1 PERCENT



1. SUMMARY. The aggregate unemployment rate for
the EU-25 published by the EU Commission's
Statistical Office stood at 9.1 percent for April
2004, unchanged from the previous month. The
unemployment rate for the euro zone (the twelve EU
countries participating in the euro) was also stable
at 8.8 percent in April 2004. Without the 10 new
members, the EU-15 unemployment rate was 8.1
percent. The overall impact of the 10 new members
on the EU's unemployment rate has thus been to
increase it by 1.0 percentage point - not exactly
the huge and dramatic increase that conventional
wisdom among some in the EU-15 had feared. But the
rate for the enlarged EU concealed wide differences
in the rates of individual Member States ranging
from 4.2 percent in Luxembourg to 18.9 percent in
Poland. END SUMMARY.


2. Following enlargement, the EU Commission
Statistical Office (EUROSTAT) is now publishing
compiled monthly unemployment data for the EU-25.
With seasonal adjustment and compensation for
differences in national statistical methods, the EU-
25 rate stood at 9.1 percent in April 2004,
unchanged in comparison to both March 2004 and April

2003. The unemployment rate for the euro zone stood
at 9.0 percent in April 2004, also unchanged in
comparison with March 2004. The euro-zone rate was
9.1 percent in April 2003.


3. The lowest rates among the EU-25 (April 2004
rates unless otherwise indicated) were recorded in
Luxembourg (4.2 percent),Cyprus (4.4 percent),
Ireland and Austria (both 4.5 percent),the
Netherlands (4.7 percent, March 2004) and the UK
(4.7 percent in February 2004). Poland (18.9
percent),Slovakia (16.6 percent),Lithuania (11.5
percent) and Spain (11.2 percent) showed the highest
rates among the EU-25.


4. EUROSTAT noted that fourteen Member States
showed an increase in their unemployment rate over
the past twelve months, ten a decrease and one
recorded no change. The most significant increases
in unemployment rates (April 2003-to-April 2004
comparison unless otherwise noted) were recorded in
the Netherlands (from 3.5 percent in March 2003 to
4.7 percent in March 2004),Luxembourg (from 3.5
percent to 4.2 percent),Sweden (from 5.4 percent to
6.3 percent),and Malta (from 7.9 percent to 9.0
percent). By contrast, the largest decreases
occurred in Lithuania (from 13.2 percent to 11.5
percent),Estonia (from 10.4 percent to 9.2
percent),and the UK (from 5.1 percent in February
2003 to 4.7 percent in February 2004).


5. Based on EUROSTAT estimates, male unemployment
reached 8.3 percent in April 2004 for the EU-25 and
8.0 percent for the euro zone, respectively
unchanged and up from 7.8 percent when compared to
April 2003. The female rate for the EU-25 was
stable at 10.0 percent over the same period (up from
10.2 percent to 10.3 percent for the euro zone).


6. Unemployment rates among young people under 25
in April 2004 ranged from 7.3 percent in Austria to
39.6 percent in Poland. The rate for this age group
in April 2004 was estimated at 18.1 percent for the
EU-25 and 17.3 percent for the euro zone, compared
to 18.4 percent (thus down 0.3 percentage point) and
17.1 percent (up 0.2 percentage point) respectively
in April 2003.


7. EUROSTAT estimated that 19.3 million were
unemployed in the EU-25 in April 2004 (12.7 million
in the euro zone). Following is the breakdown of
unemployment rates in ascending order for the
individual EU Member States:

(Seasonally-adjusted)
(April 2004 unless otherwise indicated)

Luxembourg 4.2
Cyprus 4.4
Ireland 4.5
Austria 4.5
Netherlands 4.7 (March 2004)
UK 4.7 (February 2004)
Denmark 5.9 (March 2004)
Hungary 5.9
Sweden 6.3
Slovenia 6.4
Portugal 6.8
Belgium 8.5
Czech Republic 8.5
Italy 8.5 (January 2004)
Malta 9.0
Finland 9.1
Estonia 9.2
Greece 9.3 (December 2003)
France 9.4
Denmark 9.8
Latvia 10.7
Spain 11.2
Lithuania 11.5
Slovakia 16.6
Poland 18.9

EU-15 8.1
EU-25 9.1


8. The monthly rates and numbers of unemployed are
estimated and based on data from the annual EU labor
force survey. The estimated rates may differ from
national unemployment rates due to differences in
methods and definitions of unemployment. Unemployed
people according to ILO criteria are those aged 15
and over who:

-- Are without work;

-- Are available to start work within the next two
weeks; and

-- Have actively sought employment at some time
during the previous four weeks.

SCHNABEL