UNEMPLOYMENT DOWN TO 7.0 PERCENT IN

UNCLAS SECTION 01 OF 02 BRUSSELS 002199 SIPDIS SIPDIS DOL FOR BLS AND ILAB TREASURY FOR IMI STATE FOR DRL/IL E.O. 12958: N/A TAGS: ELAB EUN SUBJECT: UNEMPLOYMENT DOWN TO 7.0 PERCENT IN BOTH EU-27 AND EURO AREA ¶1. SUMMARY. The aggregate unemployment rate for both the EU-27 and the euro area (the thirteen EU countries participating in the euro) reached 7.0 percent in May 2007, according to data published by the EU Commission's Statistical Office (EUROSTAT) on July 3. The figures confirmed the downward trend in EU unemployment over the past 12 months. END SUMMARY. ¶2. With seasonal adjustment and compensation for differences in national statistical methods, the unemployment rate in both the EU- 27 and the euro zone stood at 7.0 percent in May 2007. The figures were down 0.1 percentage point from the April 2007 rate for both areas. In May 2006 (corresponding month of the previous year) the unemployment rate stood at 8.0 percent for the EU-27 and at 7.9 percent for the euro area. The month-to-month decreases confirmed the overall improvement in EU unemployment figures. ¶3. The country-by-country analysis revealed a more nuanced picture. The lowest rates compiled from the EU-27 for May 2007 were recorded in the Netherlands (3.2 percent), Denmark (3.3 percent),Ireland (4.1 percent) and Cyprus (4.2 percent). The highest rates were recorded in Slovakia (10.8 percent) and Poland (10.5 percent -- no longer the highest rate among EU countries since its accession in 2004). ¶4. EUROSTAT noted that twenty-two countries among the EU-27 recorded a decrease in their unemployment rate over a year, four an increase, while the unemployment rate was stable in Romania. The most significant decreases (May-to-May comparison) occurred in Poland (14.2 percent to 10.5 percent),Denmark (4.2 percent to 3.3 percent) and Bulgaria (9.2 percent to 7.2 percent). The highest relative increases were recorded in Hungary (from 7.3 percent to 7.7 percent) and Luxembourg (from 4.6 percent to 4.8 percent). ¶5. Based on EUROSTAT estimates, male unemployment reached 6.2 percent in May 2007 for the EU-27 and 5.9 percent for the euro zone, down by 1.1 percentage point and 0.9 percentage point respectively when compared to May 2006. The female rate over the same period decreased to 8.0 percent for the EU-27 and to 8.4 percent for the euro zone (minus 0.9 percentage point in both areas). ¶6. Unemployment rates among young people under 25 (May 2007 estimates, unless otherwise noted) ranged from 5.7 percent in the Netherlands and 6.4 percent in Denmark to 24.6 percent in Greece (first quarter of 2007),22.1 percent in Poland, and 21.9 percent in both France and Romania. The rate for this age group in May 2007 was estimated at 15.9 percent for the EU- 27 and 15.3 percent for the euro zone, compared to 17.5 percent (minus 1.6 percentage point) and 16.6 percent (minus 1.3 percentage point) respectively in May 2006. ¶7. EUROSTAT estimated that 16.4 million were unemployed in the EU-27 in May 2007 (10.4 million in the euro zone). Following is the breakdown of unemployment rates in ascending order for the individual EU member states: (Seasonally-adjusted) (May 2007 unless otherwise indicated) Netherlands 3.2 Denmark 3.3 Ireland 4.1 Cyprus 4.2 Austria 4.4 Luxembourg 4.8 Lithuania 4.9 BRUSSELS 00002199 002 OF 002 Slovenia 5.1 Estonia 5.2 UK 5.4 (March 2007) Czech Republic 5.7 Latvia 5.9 Italy 6.2 (first quarter 2007) Sweden 6.2 (provisional) Malta 6.5 Germany 6.6 (provisional) Finland 6.6 Bulgaria 7.2 Romania 7.3 Belgium 7.4 Hungary 7.7 Portugal 7.9 Spain 8.2 Greece 8.6 (first quarter 2007) France 8.7 (see note below) Poland 10.5 Slovakia 10.8 Euro zone 7.0 EU-27 7.0 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. GRAY