EU UNEMPLOYMENT AT 7.0 PERCENT; EURO ZONE UNEMPLOYMENT AT

UNCLAS SECTION 01 OF 02 BRUSSELS 003270

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 AT 7.0 PERCENT; EURO ZONE UNEMPLOYMENT AT
7.3 PERCENT



1. SUMMARY. The aggregate unemployment rate for
the EU-27 reached 7.0 percent in September 2007,
according to data published by the EU Commission's
Statistical Office (EUROSTAT) on October 31. Unemployment in the
euro zone (the thirteen EU
countries participating in the euro) stood at 7.3
percent. END SUMMARY.


2. With seasonal adjustment and compensation for
differences in national statistical methods, the
unemployment rate in the EU-27 stood at 7.0 percent
in September 2007, down from 7.1 percent in August 2007 (revised
upward from 6.7 percent initial estimate reported last month) and
from 8.0 percent in September 2006. The unemployment rate for the
euro zone stood at 7.3 percent in September 2007, down from 7.4
percent in August 2007 (also revised upward from 6.9 percent initial
estimate) and from 8.1, percent in September 2006.


3. EUROSTAT said the significant upward revision of its August 2007
rates for both the EU and euro areas was due mainly to a revision of
German unemployment data, now based on the continuous Labor Force
Survey to calculate monthly harmonized unemployment. Due to the
size of the German economy, the revision had a marked impact on
EUROSTAT data. Moreover, as a regular update of the calculation
process, most recent data from the latest EU Labor Force Survey have
been included for several Member States, which had the effect of
causing a revision in the rates for Ireland and the Netherlands, in
particular.


4. The lowest rates compiled by EUROSTAT from the
EU-27 for September 2007 were recorded in the Netherlands (3.1
percent) and in Denmark (3.3 percent, August 2007 figures). The
highest rates were recorded in Slovakia (11.1 percent) and Poland
(8.8 percent).


5. EUROSTAT noted that twenty-three countries among
the EU-27 recorded a decrease in their unemployment
rate over a year and three an increase, while the unemployment rate
was stable in Luxembourg. The most significant decreases
(September-to-September comparison) occurred in Poland (from 12.9
percent to 8.8 percent) and Lithuania (from 6.0 percent to 4.1
percent). The highest relative increases were
recorded in Ireland (from 4.1 percent to 4.8 percent) and Portugal
(from 7.6 percent to 8.3
percent).


6. Based on EUROSTAT estimates, male unemployment
reached 6.5 percent in September 2007 for the EU-27 and 6.6 percent
for the euro zone, down by 0.9 percentage point and 0.6 percentage
point
respectively when compared to September 2006. The female rate over
the same period decreased to 7.7 percent for the EU-27 (minus 1.0
percentage point) and to 8.3 percent for the euro zone (minus 0.9
percentage point).


7. Unemployment rates among young people under 25
(September 2007 estimates, unless otherwise noted) ranged from 5.6
percent in the Netherlands, 6.5 percent in Denmark (August 2007),
and 8.0 percent in Austria to 22.9 percent in Greece (second quarter
of 2007),21.6 percent in France, 19.6 percent in Romania and 19.2
percent in Poland. The rate for this age group in September 2007
was estimated at 15.1 percent for the EU-27 and 14.9 percent for the
euro zone, compared to 16.9 percent (minus 1.8 percentage point) and
15.9 percent (minus 0.8 percentage point) respectively in September

2006.


8. EUROSTAT estimated that 16.7 million were
unemployed in the EU-27 in September 2007 (11.2 million in the euro
zone). Following is the breakdown of unemployment rates in
ascending order for the individual EU member states:

(Seasonally-adjusted)
(September 2007 unless otherwise indicated)

Netherlands 3.1
Denmark 3.3 (August 2007)
Cyprus 3.7
Lithuania 4.1
Austria 4.2
Slovenia 4.7
Ireland 4.8
Luxembourg 4.8
Czech Republic 5.2
Latvia 5.2
UK 5.3 (July 2007)
Estonia 5.7

BRUSSELS 00003270 002 OF 002


Sweden 5.8 (provisional)
Italy 5.9 (second quarter 2007)
Bulgaria 6.3
Malta 6.3
Finland 6.9
Romania 7.2
Hungary 7.3
Belgium 7.5
Spain 8.0
Germany 8.1
Portugal 8.3
Greece 8.4 (second quarter 2007)
France 8.6 (see note below)
Poland 8.8
Slovakia 11.1
Euro zone 7.3
EU-27 7.0

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.


9. 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.

MURRAY