EU UNEMPLOYMENT UP TO 7.0 PERCENT; EURO ZONE RATE STABLE

1. SUMMARY. The aggregate unemployment rate for
the EU-27 reached 7.0 percent in September 2008 (up from 6.9 percent
in August 2008), according to data published by the EU Commission's
Statistical Office (EUROSTAT) on October 31. Unemployment in the
euro zone (EU-15 participating in the euro) was stable at 7.5
percent in September 2008. The overall picture of stability
nevertheless concealed an increase in the number of unemployed in
several EU countries, reflecting a deterioration of the labor market
situation that is likely to be confirmed in the months to come. END
SUMMARY.



2. With seasonal adjustment and compensation for differences in
national statistical methods, the
unemployment rate for the EU-27 stood at 7.0 percent
in September 2008, up from 6.9 percent in August 2008 and unchanged
in comparison with September 2007. The unemployment rate for the
euro zone stood at 7.5 percent in September 2008, unchanged from
August 2008 but up from 7.3 in September 2007 (comparison based on
the EU-15; euro zone membership effective since January 1, 2008).



3. The lowest monthly rates among those compiled by EUROSTAT from
the EU-27 for September 2008 were recorded in the Netherlands (2.5
percent) and Denmark (2.9 percent). The highest rates were recorded
in Spain (11.9 percent) and Slovakia (10.0 percent).



4. EUROSTAT noted that seventeen countries among
the EU-27 recorded a decrease in their unemployment
rate over a year, nine an increase and one remained stable. The
most significant decreases (September -to-September comparison)
occurred in Poland (from 9.0 percent to 6.5 percent) and Austria
(from 4.5 percent to 3.2 percent), while the highest increases
occurred in Spain (from 8.3 percent to 11.3 percent) and Ireland
(from 4.6 percent to 6.6 percent).



5. Based on EUROSTAT estimates, male unemployment
reached 6.6 percent in September 2008 for the EU-27 and 6.9 percent
for the euro zone, up 0.2 percentage point and 0.4 percentage point
respectively when compared to September 2007. The female
unemployment rate over the same period reached 7.4 percent for the
EU-27 and 8.2 percent for the euro zone, minus 0.2 percentage point
and recording no change respectively over the twelve-month period.



6. Unemployment rates among young people under 25 for September
2008 ranged from 5.3 percent in the Netherlands and 6.0 percent in
Austria to 25.9 percent in Spain. The September 2008 rate for this
age group was estimated at 15.3 percent for both the EU-27 and the
euro zone, compared to 15.0 percent (plus 0.3 percentage point) and
14.5 percent (plus 0.8 percentage point) respectively for September


2007.



7. EUROSTAT estimated that 16.710 million were
unemployed in the EU-27 in September 2008 (11.691 million in the
euro zone). In absolute numbers, the number of unemployed increased
by 132,000 for the EU-27 and by 507,000 for the euro zone over the
twelve-month period.



8. Following is the breakdown of unemployment rates in ascending
order for the individual EU member states:

(Seasonally-adjusted)
(September 2008 unless otherwise indicated)

Netherlands 2.5
Denmark 2.9
Austria 3.2
Cyprus 3.8
Slovenia 4.1
Estonia 4.2
Luxembourg 4.2
Czech Republic 4.3
Lithuania 4.6
Bulgaria 5.6
Malta 5.6
UK 5.6 (July 2008)
Romania 5.9 (second quarter 2008)
Sweden 6.1
Poland 6.5
Finland 6.5
Belgium 6.6
Ireland 6.6
Italy 6.8 (second quarter 2008)
Latvia 6.8
Germany 7.1
Portugal 7.3
Greece 7.5 (second quarter 2008)
France 7.9

BRUSSELS 00001687 002 OF 002


Hungary 7.9
Slovakia 10.0
Spain 11.9
Euro zone 7.5
EU-27 7.0



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.

SILVERBERG