Does the Latest Data Spell Trouble for a European Recovery?
The latest releases from Eurostat show a rise in unemployment rates in the eurozone as well as decreased inflation rates in the area. This combines to create a worrisome picture that some have indicated may dampen hopes of a quick economic recovery for the eurozone.
Unemployment in the eurozone in the month of September was 12.2 percent. Although this is constant from August, Eurostat also revised August’s numbers up from 12 percent to 12.2 percent, meaning that, effectively, unemployment levels have come in at 0.2 percentage points higher than the office’s prediction. The persistently high unemployment rate for the region has been a perpetual thorn in the side of those who are claiming that the eurozone’s recovery is underway.
Meanwhile, inflation dropped to almost record lows, standing at 0.7 percent annually for the month of October. This is down from September’s levels of 1.1 percent and significantly lower than last year’s rate in October of 2.5 percent. October was also the fourth straight month in which inflation rates have either kept constant or declined in the the eurozone.