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Tuesday, 8 January 2013

Euro Area Unemployment Rate hits New High - 12.1%, Increased Unemployment in France and Italy

The unemployment rate in the euro area (17 countries) continues to increase data released today by Eurostat shows. As of November 2012 the unemployment rate now stands at 12.1%, up from the 11.8% reported for October 2012. Please note that the press release states an unemployment rate of 11.8% for the month of November 2012 while the data table ("harmonised unemployment rates") published shows 12.1%. This report deals with the latter. This was the highest unemployment rate reported following the "financial crisis" of 2008 and demonstrates that employment wise, things are only getting worse in the euro area.

Spain reported the worst unemployment rate for the month with 26.5% (Greece not yet reported) while the likely addition to the euro area this year, Croatia, reported an unemployment rate of 17.6%. It is worth mentioning that in France, the unemployment rate is continuing to get worse and the rate of 10.9% (up from 10.6% in Oct-12) is the highest yet reported following the beginning of the downturn in 2008. The same is true for Italy, which reported an even higher unemployment rate of 11.9% (up from 11.8% in Oct-12).

Expecting an economic improvement in the euro area this year is optimistic. In fact, together with poor industrial production figures and the continued increase in unemployment, the euro area economy is likely to deteriorate further, much further. In fact, as long as the central planning committee in Brussels continues to be in charge (together with the ECB and the IMF), as long as bail outs of bust countries and banks continue with tax payer money, it will only continue to get worse. It is the main reason for the debt crises and the main reason it is not going to end any time soon.