EU UNEMPLOYMENT UP TO 9.0 PERCENT; EURO ZONE RATE UP TO

UNCLAS SECTION 01 OF 02 BRUSSELS 001207 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 9.0 PERCENT; EURO ZONE RATE UP TO 9.5 PERCENT ¶1. SUMMARY. The latest EU unemployment data released by the EU Commission's Statistical Office (EUROSTAT) on September 1 reflected the profound and widespread impact of the economic crisis on the EU labor markets. The aggregate unemployment rate for the EU-27 increased to 9.0 percent in July 2009 (up from 8.9 in June). Unemployment in the euro zone (the 16 EU countries currently participating in the euro) increased to 9.5 in June 2009, also up by 0.1 percentage point over 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 9.0 percent in July 2009, up from 8.9 percent in June 2009 and from 7.0 percent in July 2008. The unemployment rate for the euro zone stood at 9.5 percent in July 2009, up from 9.4 percent in June 2009 and from 7.5 percent in July 2008 (comparison based on EU-16; euro zone membership effective in July 2009). ¶3. The lowest monthly rates among those compiled by EUROSTAT from the EU-27 for July 2009 were recorded in the Netherlands (3.4 percent),Austria (4.4 percent) and Cyprus (5.5 percent). The highest rates were recorded in Spain (18.5 percent),Latvia (17.4 percent) and Lithuania (16.7 percent). ¶4. EUROSTAT data showed all countries among the EU-27 recording an increase in their unemployment rate over a year, some showing quite a sharp rise. The lowest increases took place in Romania (from 5.7 percent to 6.2 percent between the first quarters of 2008 and 2009) and Germany (from 7.2 percent to 7.7 percent in July-to-July comparison). The sharpest yearly increases occurred in the Baltics: from 5.8 percent to 16.7 percent in Lithuania, from 6.9 percent to 17.4 percent in Latvia (July-to-July comparison for both countries) and from 4.1 percent to 13.3 percent in Estonia (between the second quarters of 2008 and 2009). ¶5. Based on EUROSTAT estimates, male unemployment reached 9.1 percent in July 2009 for the EU-27 and 9.3 percent for the euro zone, up 2.5 percentage point and up 2.4 percentage point respectively when compared to July 2008. The female unemployment rate for July 2009 reached 9.0 percent for the EU-27 and 9.8 percent for the euro zone, up 1.6 percentage point and up 1.5 percentage point respectively over the twelve-ployment rates among yo 9.2 Sweden 9.2 France 9.8 Hungary 10.3 Slovakia 12.0 Ireland 12.5 Estonia 13.3 (May 2009) BRUSSELS 00001207 002 OF 002 Lithuania 16.7 Latvia 17.4 Spain 18.5 EU-27 9.0 Euro zone 9.5 ¶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. MURRAY