News / Europe

Eurozone Unemployment Soars to New High

A young couple approach an employment agency in Milan, Italy, April 2, 2012.
A young couple approach an employment agency in Milan, Italy, April 2, 2012.
Lisa BryantVOA News
The 17-nation eurozone has started 2013 on a grim note, with new statistics showing November unemployment at an all-time high.  

There is optimism the worst of the eurozone crisis is over, but the latest figures published by the European Union's statistical service offers a dose of reality.

​Eurostat's November figures show unemployment in the eurozone currency union climbing to a record 11.8 percent - up 0.1 percent from October, and more than a percentage point from a year ago.

Deputy director Guntram Wolff, of Brussels-based think-tank Bruegel, predicts 2013 will be another tough year for the eurozone.

"I think it sends a clear message that the economic crisis is still there and certainly we still have a major problem with our structural unemployment, with the business cycle situation, with the general economic outlook," he said.

Roughly 19 million people living in the currency union are out of work, two million more than a year ago. Unemployment is highest in two of Europe's most indebted economies, Spain and Greece, with more than a quarter of their populations out of work.

Austria, Luxembourg and Germany score the best, with the respective jobless rates at just 4.5 percent, 5.1 percent and 5.4 percent. France ranks roughly in the middle of the 17-nation currency union, with 10.7 percent unemployed in November, which is also the average for the entire 27-member European Union.

Youth hardest hit

The region's youth are the hardest hit. Nearly one-quarter of young, working-age Europeans are out of a job. In Greece and Spain, nearly six in 10 can not find work.

"I am really afraid that we have a generation that is, in a sense, a lost generation," Wolff said. "Because at that age, if you are unemployed, you will lose not just one or two years of your lifetime job, but you will really lose confidence in yourself for your entire life."

Some analysts predict unemployment will rise this year, suggesting the eurozone's problems are far from over.  

Jennifer McKeown, the senior European economist at Capital Economics in London, said she sees the jobless rate continuing to increase and that it could easily top 12 percent in the coming months.

"Lately, we have seen the rate increases have slowed a bit, which is broadly encouraging," she said. "But I suggest there are various public sector job cuts still in the pipeline and while the rate at which that is happening might be slowing in economies like Greece or like Portugal, it’s hitting harder now in core economies like France, so I think it’s fairly likely unemployment will continue rising."

McKeown said the jobless numbers point to a sharp divide in the economic fortunes of the eurozone nations, with countries on the geographic periphery performing much worse than those in the northern reaches of the currency bloc.

She added the divergence between the economies is nowhere clearer in the eurozone than in unemployment figures in Spain, for example, where the rate is over 26 percent, whereas Austrian unemployment is down at 4.5 percent.

"That’s just a massive divergence and I think its shows the eurozone is a very varied economy and it was bound to be very difficult to bring all the size economies together," McKeown said.

You May Like

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine May Be in Use by Jan.

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid