EU UNEMPLOYMENT STABLE AT 7.3 PERCENT;

UNCLAS SECTION 01 OF 02 BRUSSELS 001486 SIPDIS SIPDIS DOL FOR BLS AND ILAB TREASURY FOR IMI STATE FOR DRL/IL E.O. 12958: N/A TAGS: ELAB EUN SUBJECT: EU UNEMPLOYMENT STABLE AT 7.3 PERCENT; EURO ZONE RATE DOWN TO 7.2 PERCENT REF: BRUSSELS 1100 ¶1. SUMMARY. The aggregate unemployment rate for the EU-27 was stable at 7.3 percent in March 2007, according to data published by the EU Commission's Statistical Office (EUROSTAT) on May 2. The unemployment rate for the euro zone (the thirteen EU countries participating in the euro) was down to 7.2 percent. END SUMMARY. ¶2. With seasonal adjustment and compensation for differences in national statistical methods, the EU- 27 unemployment rate stood at 7.3 percent in March 2007, unchanged from February 2007 (revised downward from initial 7.4 percent estimate reported REFTEL) and down from 8.2 percent in March 2006. The unemployment rate for the euro zone stood at 7.2 percent in March 2007, down from 7.3 percent in February. ¶3. The lowest rates compiled from the EU-27 for March 2007 were recorded in Denmark and the Netherlands (both 3.4 percent) as well as Ireland (3.9 percent). The highest rates were recorded in Poland (11.4 percent) and Slovakia (10.8 percent), though the unemployment rate in both countries continues its steady decline. ¶4. EUROSTAT noted that twenty-three countries among the EU-27 recorded a decrease in their unemployment rate over a year and four recorded an increase. The most significant decreases (March-to-March comparison) occurred in Slovenia (from 6.4 percent to 4.6 percent),Poland (from 15.0 percent to 11.4 percent) and Slovakia (from 14.2 percent to 10.8 percent). The highest relative increases were recorded in Romania (from 6.9 percent to 7.8 percent) and Hungary (from 7.3 percent to 8.1 percent). ¶5. Based on EUROSTAT estimates, male unemployment reached 6.4 percent in March 2007 for the EU-27 and 6.0 percent for the euro zone, down by 1.0 percentage point in both areas when compared to March 2007. The female rate over the same period decreased to 8.3 percent (minus 0.8 percentage point) for the EU-27 and to 8.7 percent (minus 0.9 percentage point) for the euro zone. ¶6. Unemployment rates among young people under 25 (March 2007 estimates, unless otherwise noted) ranged from 6.5 percent in the Netherlands and 6.6 percent in Denmark to 25.5 percent in Poland, 25.5 percent in Greece (fourth quarter of 2006),and 24.4 percent in Poland. The rate for this age group in March 2007 was estimated at 16.6 percent for the EU- 27 and 16.1 percent for the euro zone, compared to 18.0 percent (minus 1.4 percentage point) and 17.3 percent (minus 1.2 percentage point) respectively in March 2006. ¶7. EUROSTAT estimated that 17.0 million were unemployed in the EU-27 in March 2007 (10.8 million in the euro zone). Following is the breakdown of unemployment rates in ascending order for the individual EU member states: (Seasonally-adjusted) (March 2007 unless otherwise indicated) Denmark 3.4 Netherlands 3.4 Ireland 3.9 Cyprus 4.3 Austria 4.4 Slovenia 4.6 Estonia 4.9 Luxembourg 4.9 UK 5.4 (January 2007) Lithuania 5.5 Latvia 5.6 Czech Republic 6.2 Italy 6.5 (fourth quarter 2006) Malta 6.6 Sweden 6.6 (provisional) Germany 7.0 (provisional) BRUSSELS 00001486 002 OF 002 Finland 7.2 Belgium 7.5 Portugal 7.5 Romania 7.8 Bulgaria 8.0 Hungary 8.1 Spain 8.3 Greece 8.6 (fourth quarter 2006) France 8.7 (see note below) Slovakia 10.8 Poland 11.4 Euro zone 7.2 EU-27 7.3 Note: Estimates for France are based on results of the Labor Force Survey that are provisional and may be subject to revision later this year. ¶8. The monthly rates and numbers of unemployed are estimated and based on data from the 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