EU UNEMPLOYMENT DOWN TO 6.8 PERCENT; EURO ZONE RATE

UNCLAS SECTION 01 OF 02 BRUSSELS 000164

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 6.8 PERCENT; EURO ZONE RATE
UNCHANGED AT 7.2 PERCENT


1. SUMMARY. The aggregate unemployment rate for
the EU-27 was down to 6.8 percent in December 2007, according to
data published by the EU Commission's Statistical Office (EUROSTAT)
on January 31. Unemployment in the euro zone (the thirteen EU
countries participating in the euro - based on membership in
December 2007) was stable at 7.2 percent. END SUMMARY.


2. With seasonal adjustment and compensation for differences in
national statistical methods, the
unemployment rate in the EU-27 stood at 6.8 percent
in December 2007, down from 6.9 percent the previous month and from
7.6 percent in December 2006. The unemployment rate for the euro
zone stood at 7.2 percent in December 2007, unchanged from November
2007 and down from 7.8 percent in December 2006.


3. The lowest rates compiled by EUROSTAT from the
EU-27 for December 2007 were recorded in the Netherlands (2.9
percent) and Denmark (3.1 percent). The highest rates were recorded
in Slovakia (10.8 percent) and Spain (8.6 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 (December-to-December comparison) occurred in Poland (from
11.8 percent to 8.1 percent) and Bulgaria (from 8.2 percent to 5.8
percent). The rises were recorded in Spain (from 8.2 percent to 8.6
percent),Portugal (from 7.9 percent to 8.2 percent) and Ireland
(from 4.4 percent to 4.5 percent).


5. Based on EUROSTAT estimates, male unemployment
reached 6.4 percent in December 2007 for the EU-27 and 6.5 percent
for the euro zone, down by 0.6 percentage point and 0.4 percentage
point
respectively when compared to December 2006. The female rate over
the same period decreased to 7.3 percent for the EU-27 and to 8.0
percent for the euro zone, minus 1.1 percentage point and minus 0.9
percent respectively over the twelve-month period.


6. Unemployment rates among young people under 25
(December 2007 estimates, unless otherwise noted) ranged from 5.1
percent in the Netherlands and 7.9 percent in Slovenia (fourth
quarter of 2007) to 22.6 percent in Greece (third quarter of 2007)
and 21.6 percent in Romania. The rate for this age group in
December 2007 was estimated at 14.8 percent for the EU-27 and 14.3
percent for the euro zone, compared to 16.3 percent (minus 1.5
percentage point) and 15.6 percent (minus 1.3 percentage point)
respectively in December 2006.


7. EUROSTAT estimated that 16.2 million were
unemployed in the EU-27 in December 2007 (11.0 million in the euro
zone). Following is the breakdown of unemployment rates in
ascending order for the individual EU member states:

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

Netherlands 2.9
Denmark 3.1
Cyprus 3.9
Lithuania 3.9
Austria 4.3
Slovenia 4.3
Ireland 4.5
Czech Republic 4.7
Luxembourg 4.8
UK 5.2 (October 2007)
Estonia 5.3
Latvia 5.4
Sweden 5.6 (provisional)
Bulgaria 5.8
Malta 5.8
Italy 6.0 (third quarter 2007)
Finland 6.6
Romania 7.0
Belgium 7.2
Hungary 7.3
Germany 7.8
France 7.8
Poland 8.1
Greece 8.2 (third quarter 2007)
Portugal 8.2
Spain 8.6
Slovakia 10.8
Euro zone 7.2
EU-27 6.8


BRUSSELS 00000164 002 OF 002



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.

MURRAY