EU UNEMPLOYMENT STABLE AT 6.8 PERCENT; EURO ZONE RATE ALSO

UNCLAS SECTION 01 OF 02 BRUSSELS 000321

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 6.8 PERCENT; EURO ZONE RATE ALSO
UNCHANGED AT 7.1 PERCENT



1. SUMMARY. The aggregate unemployment rate for
the EU-27 was stable at 6.8 percent in January 2008, according to
data published by the EU Commission's Statistical Office (EUROSTAT)
on February 29. Unemployment in the euro zone (the fifteen EU
countries participating in the euro - membership enlarged to Cyprus
and Malta on January 2008 was also 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 January 2007, unchanged from the previous month and down from 7.5
percent in January 2007. The unemployment rate for the euro zone
stood at 7.1 percent in January 2008, unchanged from December 2007
(comparison based on EU-15, membership effective since January 1,
2008) and down from 7.7 percent in January 2007.


3. The lowest monthly rates compiled by EUROSTAT from the EU-27
were recorded in the Netherlands (2.9 percent, January 2008) and
Denmark (3.1 percent, December 2007). The highest rate was recorded
in Slovakia (10.4 percent, January 2008).


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 (January-to-January comparison) occurred in Poland (from
11.1 percent to 8.6 percent),Bulgaria (from 7.8 percent to 6.2
percent) and Latvia (6.6 percent to 5.0 percent). The highest
increase was recorded in Estonia (from 4.8 percent to 5.6 percent).


5. Based on EUROSTAT estimates, male unemployment
reached 6.3 percent in January 2008 for the EU-27 and 6.4 percent
for the euro zone, down by 0.6 percentage point and 0.4 percentage
point
respectively when compared to January 2007. The female rate over
the same period decreased to 7.4 percent for the EU-27 and to 7.9
percent for the euro zone, minus 0.8 percentage point and minus 0.9
percent respectively over the twelve-month period.


6. Unemployment rates among young people under 25
ranged from 5.5 percent in the Netherlands (January 2008) and 7.9
percent in Slovenia (fourth quarter of 2007) to 22.6 percent in
Greece and 21.2 percent in Romania (third quarter of 2007). The
rate for this age group in January 2007 was estimated at 14.7
percent for the EU-27 and 14.2 percent for the euro zone, compared
to 16.0 percent (minus 1.3 percentage point) and 15.2 percent (minus
1.0 percentage point) respectively in January 2007.


7. EUROSTAT estimated that 16.1 million were
unemployed in the EU-27 in January 2007 (10.9 million in the euro
zone). Following is the breakdown of unemployment rates in
ascending order for the individual EU member states:

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

Netherlands 2.9
Denmark 3.1 (December 2007)
Cyprus 3.6
Slovenia 4.1
Austria 4.2
Lithuania 4.5
Luxembourg 4.6
Czech Republic 4.7
Ireland 4.7
Latvia 5.0
UK 5.1 (November 2007)
Estonia 5.6
Sweden 5.6 (provisional)
Malta 5.8
Italy 6.0 (third quarter 2007)
Bulgaria 6.2
Finland 6.4
Romania 6.5
Belgium 7.0
Hungary 7.2
Portugal 7.5 (x)
Germany 7.6
France 7.8
Greece 8.2 (third quarter 2007)
Poland 8.6
Spain 8.8
Slovakia 10.4
Euro zone 7.1
EU-27 6.8


BRUSSELS 00000321 002 OF 002


(x) Estimates for Portugal have been revised, due to a change of
methodology.


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.

WOHLERS