EU UNEMPLOYMENT UP TO 8.6 PERCENT; EURO ZONE RATE UP TO

UNCLAS SECTION 01 OF 02 BRUSSELS 000767 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 8.6 PERCENT; EURO ZONE RATE UP TO 9.2 PERCENT ¶1. SUMMARY. The latest EU unemployment data as released by the EU Commission's Statistical Office (EUROSTAT) on June 2 confirmed the sharp deterioration of the EU labor market situation. The aggregate unemployment rate for the EU-27 soared to 8.6 percent in April 2009 (up from 8.4 in March). Unemployment in the euro zone (the 16 EU countries currently participating in the euro) increased to 9.2 in March 2009, up by 0.3 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 8.6 percent in April 2009, up from 8.4 percent in March 2009 (revised upward from initial 8.3 estimate) and from 6.8 percent in April 2008. The unemployment rate for the euro zone stood at 9.2 percent in April 2009, up from 8.9 percent in March 2009 and from 7.3 percent in April 2008 (comparison based on EU-16; euro zone membership effective in April 2009). ¶3. The lowest monthly rates among those compiled by EUROSTAT from the EU-27 for April 2009 were recorded in the Netherlands (3.0 percent) and Austria (4.2 percent),while the highest rates were recorded in Spain (18.1 percent),Latvia (17.4 percent) and Lithuania (16.8 percent). ¶4. EUROSTAT data showed only two countries among the EU-27 recording a decrease in their unemployment rate over a year, the other twenty-five showing increases that were sometimes dramatic. The only falls occurred in Romania (from 6.1 percent to 5.8 percent but the comparison applies to rates between the fourth quarters of 2007 and 2008 - latest available figures) and Greece (from 7.9 percent to 7.8 percent, again between the fourth quarters of 2007 and 2008). The sharpest increases between April 2008 and April 2009 occurred in the Baltics: from 4.3 percent to 16.8 percent in Lithuania, from 6.1 percent to 17.4 percent in Latvia, and from 3.7 percent to 13.9 percent in Estonia. ¶5. Based on EUROSTAT estimates, male unemployment reached 8.6 percent in April 2009 for the EU-27 and 8.9 percent for the euro zone, up 2.3 percentage point for both areas when compared to April 2008. The female unemployment rate for April 2009 reached 8.5 percent for the EU-27 and 9.4 percent for the euro zone, up 1.2 percentage point for both areas over the twelve-month period. ¶6. Unemployment rates among young people under 25 for April 2009 ranged from 6.0 percent in the Netherlands to 36.2 percent in Spain. The April 2009 rate for this age group was estimated at 18.7 percent for the EU-27 and at 18.5 percent for the euro zone, compared to 14.7 percent for both areas for April 2008 (plus plus 4.0 percentage point and 3.8 percentage point respectively). ¶7. EUROSTAT estimated that 20.825 million were unemployed in the EU-27 in April 2009, of which 14.579 million in the euro zone. In absolute numbers, the number of unemployed increased by 4,653,000 for the EU-27 and by 3,100,000 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) (April 2009 rates unless otherwise indicated) Netherlands 3.0 Austria 4.2 Cyprus 5.4 Denmark 5.5 Slovenia 5.5 Czech Republic 5.7 Romania 5.8 (fourth quarter 2008) Bulgaria 6.2 Luxembourg 6.3 Malta 6.8 Italy 6.9 (fourth quarter 2008) UK 6.9 (February 2009) Belgium 7.5 Germany 7.7 Greece 7.8 (fourth quarter 2008) Poland 7.8 Finland 7.8 Sweden 8.5 France 8.9 Portugal 9.3 Hungary 9.6 Ireland 11.1 BRUSSELS 00000767 002 OF 002 Slovakia 11.1 Estonia 13.9 Lithuania 16.8 Latvia 17.4 Spain 18.1 EU-27 8.6 Euro zone 9.2 ¶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. DAVIS