4/2/2012
7:15 AM ET
(RTTNews) - Eurozone
unemployment rate rose to a record high in February, reflecting increasing
divergences between countries.
The
seasonally adjusted jobless rate rose to 10.8 percent, the highest since 1997,
from 10.7 percent in January, data from Eurostat showed Monday. The outcome was
in line with economists' forecast. The rate was 10 percent in February 2011.
Companies reduced hiring to
contain cost and squeezed margin amid rising oil prices. IHS Global Insight
Chief Europe Economist Howard Archer expects the jobless rate to rise
significantly higher as the economy likely having suffered a reduction in GDP
amid weak business
sentiment.
It now looks odds-on that
the Eurozone unemployment rate will move above 11 percent in 2012, Archer
added. Nearly
17.13 million people are unemployed in the 17-nation bloc. Compared with
January, the number of unemployed increased by 162,000 in the euro area.
Annually, unemployment rose by 1.476 million.
Spain
continued to log the highest unemployment rate of 23.6 percent, followed by Greece
In the EU27, the jobless
rate was 10.2 percent in February, compared with 10.1 percent in January.
Compared with a year ago,
the unemployment rate fell in eight member states, increased in eighteen and
remained stable in Romania
The unemployment rate for
males increased to 10.7 percent in February from 9.7 percent a year ago.
Likewise, the female unemployment rate rose to 11 percent from 10.3 percent.
ING Bank
Economist Martin van Vliet said the high level of unemployment will limit the
potential for above-target inflation driven up by oil prices to feed through
into higher wages. Accordingly, the European Central Bank will not be over
concerned about stickier inflation and keep its interest rates extremely low
for an extended period.
by RTT Staff Writer.
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