EU UNEMPLOYMENT UP TO 7.1 PERCENT; EURO ZONE RATE UP TO

UNCLAS SECTION 01 OF 02 BRUSSELS 001802 SIPDIS DOL FOR BLS AND ILAB TREASURY FOR IMI STATE FOR DRL/IL E.O. 12958: N/A TAGS: ELAB EUN SUBJECT: EU UNEMPLOYMENT UP TO 7.1 PERCENT; EURO ZONE RATE UP TO 7.7 PERCENT ¶1. SUMMARY. The latest EU unemployment data collected by the EU Commission's Statistical Office (EUROSTAT) confirm the deterioration of the labor market situation in Europe. The aggregate unemployment rate for the EU-27 reached 7.1 percent in October 2008 (up from 7.0 percent in September 2008),according to data published by EUROSTAT on November 28. Unemployment in the euro zone (EU countries participating in the euro) increased to 7.7 in October 2008 (also up 0.1 percentage point on the previous month). END SUMMARY. ¶2. With seasonal adjustment and compensation for differences in national statistical methods, the unemployment rate for the EU-27 stood at 7.1 percent in October 2008, up from 7.0 percent in September 2008 and from 6.9 percent in October 2007. The unemployment rate for the euro zone stood at 7.7 percent in October 2008, up from 7.6 percent in September 2008 and from 7.3 percent in October 2007 (comparison based on EU-15; euro zone membership effective since January 1, 2008). Due to the inclusion of data from the most recent EU labor force survey, the monthly unemployment figures for September 2008 have been revised upward for a certain number of countries (Estonia, Spain, Portugal and Sweden),showing a marked increase for Estonia, in particular. ¶3. The lowest monthly rates among those compiled by EUROSTAT from the EU-27 for October 2008 were recorded in the Netherlands (2.5 percent),Austria (3.0 percent) and Denmark (3.2 percent). The highest rates were recorded in Spain (12.8 percent) and Slovakia (10.0 percent). ¶4. EUROSTAT noted that fifteen countries among the EU-27 recorded a decrease in their unemployment rate over a year, eleven an increase and one remained stable. The most significant decreases (October-to-October comparison) occurred in Poland (from 8.7 percent to 6.4 percent) and Austria (from 4.3 percent to 3.0 percent),while the highest increases occurred in Spain (from 8.5 percent to 12.8 percent) and Estonia (from 4.1 percent to 7.5 percent). ¶5. Based on EUROSTAT estimates, male unemployment reached 6.8 percent in October 2008 for the EU-27 and 7.2 percent for the euro zone, up 0.4 percentage point and 0.7 percentage point respectively when compared to October 2007. The female unemployment rate over the same period reached 7.5 percent for the EU-27 and 8.3 percet for the euro zone, minus 0.1 percentage point and up 0.1 percentage point respectively over the twelve-month period. ¶6. Unemployment rates among young people under 25 for October 2008 ranged from 5.1 percent in the Netherlands and 5.4 percent in Austria to 28.1 percent in Spain and 22.4 percent in Sweden. The October 2008 rate for this age group was estimated at 15.9 percent for both the EU-27 and the euro zone, compared to 14.9 percent (plus 1.0 percentage point) and 14.6 percent (plus 1.3 percentage point) respectively for October 2007. ¶7. EUROSTAT estimated that 17.183 million were unemployed in the EU-27 in October 2008 (12.003 million in the euro zone). In absolute numbers, the number of unemployed increased by 709,000 for the EU-27 and by 810,000 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) (October 2008 unless otherwise indicated) Netherlands 2.5 Austria 3.0 Denmark 3.2 Cyprus 3.8 Luxembourg 4.2 Slovenia 4.3 Czech Republic 4.4 Lithuania 4.7 Bulgaria 5.6 Malta 5.7 UK 5.7 (August 2008) Romania 5.9 (second quarter 2008) Poland 6.4 Finland 6.4 Belgium 6.6 Sweden 6.6 Italy 6.8 (second quarter 2008) Germany 7.1 Ireland 7.1 Latvia 7.2 BRUSSELS 00001802 002 OF 002 Estonia 7.5 Greece 7.5 (second quarter 2008) Portugal 7.8 Hungary 8.1 France 8.2 Slovakia 10.0 Spain 12.8 EU-27 7.1 Euro zone 7.7 ¶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