EU-25 UNEMPLOYMENT DOWN TO 9.0 PERCENT

UNCLAS SECTION 01 OF 02 BRUSSELS 003688

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 DOWN TO 9.0 PERCENT



1. SUMMARY. The aggregate unemployment rate for
the EU-25 stood at 9.0 in July 2004, down 0.1
percentage point from the previous month, according
to data published by the EU Commission's Statistical
Office (EUROSTAT) on September 1. The unemployment
rate for the euro zone (the twelve EU countries
participating in the euro) was stable, also at 9.0
percent in July 2004. Without the 10 new members,
the EU-15 unemployment rate was also stable at 8.1
percent. END SUMMARY.


2. With seasonal adjustment and compensation for
differences in national statistical methods, the EU-
25 rate stood at 9.0 percent in July 2004, down from
9.1 percent in June 2004 and the four previous
months as well as July 2003. The unemployment rate
for the euro zone also stood at 9.0 percent in July
2004, unchanged in comparison with June 2004. The
euro-zone rate was 8.9 percent in July 2003.


3. The lowest rates among the EU-25 (July 2004
rates unless otherwise indicated) were recorded in
Austria (4.2 percent),Luxembourg (4.3 percent),
Ireland, Cyprus (4.5 percent in both countries),and
the UK (4.7 percent in May 2004). Poland (18.8
percent),Slovakia (15.9 percent),Lithuania (11.3
percent) and Spain (11.0 percent) recorded the
highest rates among the EU-25.


4. EUROSTAT noted that eleven Member States showed
an increase in their unemployment rate over the past
twelve months, eleven a decrease and three recorded
no change. The most significant increases in
unemployment rates (July 2003-to-July 2004
comparison unless otherwise noted) were recorded in
the Netherlands (from 3.8 percent in June 2003 to
4.8 percent in June 2004),Sweden (from 5.6 percent
to 6.4 percent),Luxembourg (from 3.8 percent to 4.3
percent),and the Czech Republic (from 7.9 percent
to 8.8 percent). By contrast, the largest decreases
occurred in Estonia (from 10.3 percent to 8.8
percent),Lithuania (from 12.6 percent to 11.3
percent),and Slovakia (from 17.0 percent to 15.9
percent).


5. Based on EUROSTAT estimates, male unemployment
reached 8.3 percent in July 2004 for the EU-25 and
8.0 percent for the euro zone, respectively
unchanged and up from 7.9 percent when compared to
July 2003. The female rate was stable over the same
period at 10.0 percent for the EU-25 and up from
10.2 percent to 10.3 percent for the euro zone.


6. Unemployment rates among young people under 25
in July 2004 ranged from 6.9 percent in Austria to
39.1 percent in Poland. The rate for this age group
in July 2004 was estimated at 18.0 percent for the
EU-25 and 17.4 percent for the euro zone, compared
to 18.5 percent (down 0.5 percentage point) and 17.2
percent (up 0.2 percentage point) respectively in
July 2003.


7. EUROSTAT estimated that 19.3 million were
unemployed in the EU-25 in July 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)
(July 2004 unless otherwise indicated)

Austria 4.2
Luxembourg 4.3
Ireland 4.5
Cyprus 4.5
UK 4.7 (May 2004)
Netherlands 4.8 (June 2004)
Denmark 5.9
Hungary 5.9
Slovenia 6.2
Portugal 6.4
Sweden 6.4
Italy 8.5 (January 2004)
Belgium 8.6
Malta 8.7
Czech Republic 8.8
Estonia 8.8
Finland 9.0
Greece 9.3 (December 2003)
France 9.5
Germany 9.9
Latvia 10.6
Spain 11.0
Lithuania 11.3
Slovakia 15.9
Poland 18.8

Euro zone 9.0
EU-15 8.1
EU-25 9.0


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.

MCKINLEY