Identifier
Created
Classification
Origin
07BRUSSELS3444
2007-12-04 07:27:00
UNCLASSIFIED
USEU Brussels
Cable title:  

EU UNEMPLOYMENT STABLE AT 7.0 PERCENT; EURO ZONE RATE DOWN

Tags:  ELAB EUN 
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VZCZCXRO2821
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHBS #3444/01 3380727
ZNR UUUUU ZZH
R 040727Z DEC 07
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC
RUEHC/DOL WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 02 BRUSSELS 003444 

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 7.0 PERCENT; EURO ZONE RATE DOWN
TO 7.2 PERCENT


UNCLAS SECTION 01 OF 02 BRUSSELS 003444

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 7.0 PERCENT; EURO ZONE RATE DOWN
TO 7.2 PERCENT



1. SUMMARY. The aggregate unemployment rate for
the EU-27 stood at 7.0 percent in October 2007,
according to data published by the EU Commission's
Statistical Office (EUROSTAT) on December 3. Unemployment in the
euro zone (the thirteen EU
countries participating in the euro) decreased slightly to 7.2
percent. END SUMMARY.


2. Following on a significant upward adjustment of the August 2007
rates for both the EU and euro areas due mainly to a revision of
German unemployment data (REFTEL),the latest EUROSTAT report is
pointing to a stabilization of the monthly EU unemployment data.
With seasonal adjustment and compensation for differences in
national statistical methods, the
unemployment rate in the EU-27 stood at 7.0 percent
in October 2007, unchanged from the previous month and down from 7.8
percent in October 2006. The unemployment rate for the euro zone
stood at 7.2 percent in October 2007, down from 7.3 percent in
September 2007 and from 8.0 percent in October 2006.


3. The lowest rates compiled by EUROSTAT from the
EU-27 for October 2007 were recorded in Denmark (2.9 percent) and
the Netherlands (3.1 percent). The highest rates were recorded in
Slovakia (11.2 percent) and Poland (8.8 percent).


4. EUROSTAT noted that twenty-three countries among
the EU-27 recorded a decrease in their unemployment
rate over a year and four an increase. The most significant
decreases (October-to-October comparison) occurred in Poland (from
12.6 percent to 8.8 percent) and the Czech Republic (from 6.7
percent to 5.0 percent). The highest relative increases were
recorded in Portugal (from 7.8 percent to 8.5 percent) and Ireland
(from 4.2 percent to 4.4 percent).


5. Based on EUROSTAT estimates, male unemployment
reached 6.4 percent in October 2007 for the EU-27 and 6.5 percent
for the euro zone, down by 0.9 percentage point and 0.6 percentage
point
respectively when compared to October 2006. The female rate over
the same period decreased to 7.6 percent for the EU-27 (minus 0.9
percentage point) and to 8.2 percent for the euro zone (minus 0.8
percentage point).


6. Unemployment rates among young people under 25
(October 2007 estimates, unless otherwise noted) ranged from 5.2
percent in the Netherlands, 6.2 percent in Denmark and 8.3 percent
in Austria to 22.9 percent in Greece (second quarter of 2007),20.7
percent in Romania and 19.3 percent in France. The rate for this
age group in October 2007 was estimated at 14.7 percent for the
EU-27 and 14.3 percent for the euro zone, compared to 16.6 percent
(minus 1.9 percentage point) and 15.9 percent (minus 1.6 percentage
point) respectively in October 2006.


7. EUROSTAT estimated that 16.5 million were
unemployed in the EU-27 in October 2007 (11.1 million in the euro
zone). Following is the breakdown of unemployment rates in
ascending order for the individual EU member states:

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

Denmark 2.9
Netherlands 3.1
Cyprus 3.8
Lithuania 4.3
Austria 4.3
Ireland 4.4
Slovenia 4.4
Luxembourg 4.9
Czech Republic 5.0
Latvia 5.0
UK 5.2 (August 2007)
Estonia 5.4
Sweden 5.8 (provisional)
Italy 5.9 (second quarter 2007)
Bulgaria 6.2
Malta 6.2
Finland 6.8
Hungary 7.3
Romania 7.3
Belgium 7.4
Germany 8.1
Spain 8.1
France 8.1 (see note below)
Greece 8.4 (second quarter 2007)
Portugal 8.5

BRUSSELS 00003444 002 OF 002


Poland 8.8
Slovakia 11.2
Euro zone 7.2
EU-27 7.0

Note: Estimates for France have been revised, essentially to take
account of an update of French Labor Force survey results.
Furthermore, Eurostat updated its method of seasonal adjustment for
France.


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