Year	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2009	8.50	8.80	9.10	9.20	9.30	9.40	9.50	9.60	9.80	9.90	9.90	10.00
2008	7.30	7.20	7.20	7.30	7.40	7.40	7.50	7.60	7.70	7.80	8.00	8.20
2007	7.80	7.70	7.60	7.50	7.50	7.50	7.50	7.40	7.40	7.30	7.30	7.40
2006	8.80	8.80	8.70	8.60	8.50	8.40	8.20	8.20	8.20	8.10	8.00	7.90

Euro Area Unemployment Hits 10.0%
Published: 1/29/2010 10:17:52 AM By: TradingEconomics.com, Eurostat

The euro area (EA16) seasonally-adjusted unemployment rate was 10.0% in December 2009, compared with 9.9% in November. It was 8.2% in December 2008. The EU27 unemployment rate was 9.6% in December 2009, compared with 9.5% in November. It was 7.6% in December 2008.

For the euro area this is the highest rate since August 1998 and for the EU27 since the start of the series in January 2000.

Eurostat estimates that 23.012 million men and women in the EU27, of whom 15.763 million were in the euro area, were unemployed in December 2009. Compared with November, the number of persons unemployed increased by 163 000 in the EU27 and by 87 000 in the euro area. Compared with December 2008, unemployment went up by 4.628 million in the EU27 and by 2.787 million in the euro area.

Among the Member States, the lowest unemployment rates were recorded in the Netherlands (4.0%) and Austria (5.4%), and the highest rates in Latvia (22.8%) and Spain (19.5%).

Compared with a year ago, all Member States recorded an increase in their unemployment rate. The smallest increases were observed in Germany (7.1% to 7.5%), Luxembourg (5.3% to 6.2%) and Belgium (7.1% to 8.2%). The highest increases were registered in Latvia (11.3% to 22.8%), Estonia (6.5% to 15.2% between the third quarters of 2008 and 2009) and Lithuania (6.5% to 14.6% between the third quarters of 2008 and 2009).

In December 2009, the youth unemployment rate (under-25s) was 21.0% in the euro area and 21.4% in the EU27. In December 2008 it was 17.0% and 16.9% respectively. The lowest rate was observed in the Netherlands (7.6%), and the highest rates in Spain (44.5%) and Latvia (43.8% in the fourth quarter of 2009).

Euro Area Economic News

Debt Crisis May Endanger Europe's Economic Recovery
Published: 2/6/2010 12:24:28 PM By: Anna Fedec, contact@tradingeconomics.com

In the third quarter of 2009, the Euro Area economy emerged from the worst recession since World War II. Yet, during the last few weeks, the single currency union has been facing the biggest challenge since its establishments as lower tax revenues started bringing fiscal deficit in some member countries to unsustainable levels.

ECB Holds Rates, Sees Moderate, Uneven Recovery
Published: 2/4/2010 10:25:48 AM By: TradingEconomics.com, Reuters

The European Central Bank kept interest rates at a record low of 1.0 percent on Thursday and reaffirmed its view that the euro zone's economic recovery would be modest and uneven this year.

Euro Area Inflation up to 0.9% in December
Published: 1/16/2010 2:36:57 PM By: TradingEconomics.com, Eurostat

Euro area annual inflation was 0.9% in December 20092, up from 0.5% in November. A year earlier the rate was 1.6%.

Euro Area Exports Drop for Second Month in November
Published: 1/16/2010 2:31:28 PM By: TradingEconomics.com, Business Week

European exports declined for a second month in November as the euro’s strength made goods from the region more expensive abroad.

ECB Keeps Rates on Hold
Published: 1/16/2010 2:23:22 PM By: TradingEconomics.com, MarketWatch

The European Central Bank kept benchmark interest rates unchanged at a record low of 1.0 percent on Thursday with the ECB expected to remain in a holding pattern given uneven growth and low inflation.

Euro Area Unemployment Rate Rises to 10%
Published: 1/8/2010 9:57:30 AM By: TradingEconomics.com, Eurostat

The euro area (EA16) seasonally-adjusted unemployment rate was 10.0% in November 2009, compared with 9.9% in October. It was 8.0% in November 2008.

Euro Area Inflation Accelerates
Published: 1/5/2010 9:53:05 AM By: TradingEconomics.com, Bloomberg

Consumer prices in the 16-nation euro region rose 0.9 percent from a year earlier after increasing 0.5 percent in November. The December rate was the highest since February 2009.

Euro Area Records Trade Surplus in October
Published: 12/18/2009 10:34:37 AM By: TradingEconomics.com, Reuters

The euro zone swung to a trade surplus in October from a deficit a year earlier as exports fell less than imports despite a stronger euro exchange rate, likely helping economic growth late in 2009.

Euro Area Economic Growth May be Slower in 2010
Published: 12/10/2009 6:01:52 PM By: Anna Fedec, contact@tradingeconomics.com

In the third quarter of 2009, the Euro Area economy emerged from the worst recession since World War II. And although estimates for next year are positive, the second largest economy in the world will have to face many challenges in order to make a sustainable recovery.

More news

Unemployment Rate Definition

The labour force is defined as the number of people employed plus the number unemployed but seeking work. The participation rate is the number of people in the labour force divided by the size of the adult civilian noninstitutional population (or by the population of working age that is not institutionalised). The nonlabour force includes those who are not looking for work, those who are institutionalised such as in prisons or psychiatric wards, stay-at home spouses, kids, and those serving in the military. The unemployment level is defined as the labour force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population (or by the population of working age). In these statistics, self-employed people are counted as employed.

Variables like employment level, unemployment level, labour force, and unfilled vacancies are called stock variables because they measure a quantity at a point in time. They can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the labour force are due to flow variables such as natural population growth, net immigration, new entrants, and retirements from the labour force. Changes in unemployment depend on: inflows made up of non-employed people starting to look for jobs and of employed people who lose their jobs and look for new ones; and outflows of people who find new employment and of people who stop looking for employment.

When looking at the overall macroeconomy, several types of unemployment have been identified, including:
Frictional unemployment — This reflects the fact that it takes time for people to find and settle into new jobs. If 12 individuals each take one month before they start a new job, the aggregate unemployment statistics will record this as a single unemployed worker. Technological change often reduces frictional unemployment, for example: the internet made job searches cheaper and more comprehensive.
Structural unemployment — This reflects a mismatch between the skills and other attributes of the labour force and those demanded by employers. If 4 workers each take six months off to re-train before they start a new job, the aggregate unemployment statistics will record this as two unemployed workers. Technological change often increases structural unemployment, for example: technological change might require workers to re-train.
Natural rate of unemployment — This is the summation of frictional and structural unemployment. It is the lowest rate of unemployment that a stable economy can expect to achieve, seeing as some frictional and structural unemployment is inevitable. Economists do not agree on the natural rate, with estimates ranging from 1% to 5%, or on its meaning — some associate it with "non-accelerating inflation". The estimated rate varies from country to country and from time to time.
Demand deficient unemployment — In Keynesian economics, any level of unemployment beyond the natural rate is most likely due to insufficient demand in the overall economy. During a recession, aggregate expenditure is deficient causing the underutilization of inputs (including labour). Aggregate expenditure (AE) can be increased, according to Keynes, by increasing consumption spending (C), increasing investment spending (I), increasing government spending (G), or increasing the net of exports minus imports (X?M). {AE = C + I + G + (X?M)} (source: wikipedia)