EU UNEMPLOYMENT UP TO 9.5 PERCENT; EURO ZONE RATE REACHES

UNCLAS SECTION 01 OF 02 BRUSSELS 000044

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 9.5 PERCENT; EURO ZONE RATE REACHES
10.0 PERCENT

BRUSSELS 00000044 001.2 OF 002



1. SUMMARY. The latest unemployment data released by the EU
Commission's Statistical Office (EUROSTAT) on January 8 brought more
bad news concerning the situation of the EU labor markets with no
sign that the widespread pattern of increases in jobless figures
might be coming to a halt. The aggregate unemployment rate for the
EU-27 increased to 9.5 percent in November 2009, up from 9.3 percent
in October. Unemployment in the euro zone (the 16 EU countries
currently participating in the euro) reached the symbolic 10.0
percent mark in November 2009. END SUMMARY.


2. With seasonal adjustment and compensation for differences in
national statistical methods, the
unemployment rate for the EU-27 stood at 9.5 percent
in November 2009, up from 9.4 percent in October 2009 (revised from
initial 9.3 estimate) and from 7.5 percent in November 2008. The
unemployment rate for the euro zone stood at 10.0 percent in
November 2009, up from 9.9 percent in October 2009 (revised from
initial 9.8 estimate) and up from 8.0 percent in November 2008
(comparison based on EU-16; euro zone membership effective in
November 2009).


3. The lowest monthly rates among those compiled by EUROSTAT from
the EU-27 for November 2009 were recorded in the Netherlands (3.9
percent) and Austria (5.5 percent). The highest rates were recorded
in Latvia (22.3 percent) and Spain (19.4 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 smallest increases took
place in Germany (from 7.1 percent in November 2008 to 7.6 percent
in November 2009),Luxembourg (from 5.2 percent in November 2008 to
6.0 percent in November 2009) and Malta (from 6.2 percent to 7.0
percent). The sharpest yearly increases occurred in Latvia (from
10.2 percent in November 2008 to 22.3 percent in November 2009),
Estonia (from 6.5 percent to 15.2 percent between the third quarters
of 2008 and 2009) and Lithuania (from 6.4 percent to 14.6 percent
between the third quarters of 2008 and 2009).


5. Based on EUROSTAT estimates, male unemployment
reached 9.7 percent in November 2009 for the EU-27 and 9.9 percent
for the euro zone, up 2.5 percentage point and 2.4 percentage point
respectively when compared to November 2008. The female
unemployment rate for November 2009 reached 9.2 percent for the
EU-27 and 10.0 percent for the euro zone, up 1.4 percentage point
for both areas over the twelve-month period.


6. Unemployment rates among young people under 25 for November 2009
ranged from 7.5 percent in the Netherlands to 43.8 percent in Spain.
The November 2009 rate for this age group was estimated at 21.4
percent for the EU-27 and at 21.0.percent for the euro zone,
compared to 16.6 percent for both areas in November 2008 (plus 4.8
percentage point and 4.4 percent respectively).


7. EUROSTAT estimated that 22.899 million were
unemployed in the EU-27 in November 2009, of which 15.712 million
reside in the euro zone. In absolute numbers, the number of
unemployed increased by 4,978,000 for the EU-27 and by 3,041,000 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)

(November 2009 rates unless otherwise indicated)

Netherlands 3.9
Austria 5.5
Luxembourg 6.0
Cyprus 6.2
Slovenia 6.8
Malta 7.0
Denmark 7.2
Romania 7.2 (third quarter 2009)
Germany 7.6
Bulgaria 7.8
Czech Republic 7.9
UK 7.9 (September 2009)
Belgium 8.1
Italy 8.3
Poland 8.8
Finland 8.9
Sweden 8.9
Greece 9.7 (third quarter 2009)
France 10.0
Portugal 10.3

BRUSSELS 00000044 002.2 OF 002


Hungary 10.8
Ireland 12.9
Slovakia 13.6
Lithuania 14.6 (third quarter 2009)
Estonia 15.2 (third quarter 2009)
Spain 19.4
Latvia 22.3

EU-27 9.5
Euro zone 10.0


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.

KENNARD