EU UNEMPLOYMENT DOWN TO 6.7 PERCENT; EURO ZONE

UNCLAS SECTION 01 OF 02 BRUSSELS 003068 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 DOWN TO 6.7 PERCENT; EURO ZONE UNEMPLOYMENT STABLE AT 6.9 PERCENT ¶1. SUMMARY. The aggregate unemployment rate for the EU-27 reached 6.7 percent in August 2007, according to data published by the EU Commission's Statistical Office (EUROSTAT) on October 2. Unemployment in the euro zone (the thirteen EU countries participating in the euro) stood at 6.9 percent. END SUMMARY. ¶2. With seasonal adjustment and compensation for differences in national statistical methods, the unemployment rate in the EU-27 stood at 6.7 percent in August 2007, down from 6.8 percent in July 2007 and from 7.8 percent in August 2008. The unemployment rate for the euro zone stood at 6.9 percent in August 2007, unchanged in comparison to the previous month and down from 7.8 percent in August 2006. ¶3. The lowest rates compiled by EUROSTAT from the EU-27 for August 2007 were recorded in Denmark and the Netherlands (3.3 percent in both countries). The highest rates were recorded in Slovakia (11.1 percent) and Poland (9.1 percent). ¶4. EUROSTAT noted that twenty-four countries among the EU-27 recorded a decrease in their unemployment rate over a year and three an increase. The most significant decreases (August-to-August comparison) occurred in Poland (from 13.3 percent to9.1 percent) and Lithuania (from 5.8 percent to 4.1 percent). The highest relative increases were recorded in Portugal (from 7.5 percent to 8.3 percent) and Ireland (from 4.4 percent to 4.7 percent). ¶5. Based on EUROSTAT estimates, male unemployment reached 6.0 percent in August 2007 for the EU-27 and 5.8 percent for the euro zone, down by 1.1 percentage point and 0.9 percentage point respectively when compared to August 2006. The female rate over the same period decreased to 7.6 percent for the EU-27 (minus 1.2 percentage point) and to 8.2 percent for the euro zone (minus 1.0 percentage point). ¶6. Unemployment rates among young people under 25 (August 2007 estimates, unless otherwise noted) ranged from 6.5 percent in Denmark, 6.8 percent in the Netherlands and 7.5 percent in Lithuania (second quarter of 2007) to 22.9 percent in Greece (second quarter of 2007),21.6 percent in France, 19.8 percent in Romania and 19.7 percent in Poland. The rate for this age group in August 2007 was estimated at 15.1 percent for the EU-27 and 14.9 percent for the euro zone, compared to 17.3 percent (minus 2.2 percentage point) and 16.5 percent (minus 1.6 percentage point) respectively in August 2006. ¶7. EUROSTAT estimated that 15.8 million were unemployed in the EU-27 in August 2007 (10.3 million in the euro zone). Following is the breakdown of unemployment rates in ascending order for the individual EU member states: (Seasonally-adjusted) (August 2007 unless otherwise indicated) Denmark 3.3 Netherlands 3.3 Cyprus 3.9 Lithuania 4.1 Austria 4.3 Ireland 4.7 Slovenia 4.8 Luxembourg 5.0 UK 5.2 (June 2007) Czech Republic 5.3 Estonia 5.5 Latvia 5.5 Sweden 5.5 (provisional) Italy 5.9 (second quarter 2007) Germany 6.3 (provisional) Malta 6.4 Bulgaria 6.5 Finland 6.9 Romania 7.2 Hungary 7.3 Belgium 7.7 Spain 8.0 Portugal 8.3 Greece 8.4 (second quarter 2007) France 8.6 (see note below) BRUSSELS 00003068 002 OF 002 Poland 9.1 Slovakia 11.1 Euro zone 6.9 EU-27 6.7 Note: Estimates for France are based on results of the Labor Force Survey that are provisional and will 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