RTTNews - Eurozone unemployment rose to a ten-year high in July as companies continued with headcount reductions to cope with the current economic situation. Meanwhile, Germany recorded an unexpected fall in the number of people out of jobs.
The seasonally adjusted jobless rate rose to 9.5% in July from 9.4% in June, data released by the Eurostat showed Tuesday. That was in line with economists' expectations and the highest rate since May 1999. It was 7.5% a year ago. The seasonally adjusted number of unemployed rose 167,000 to 15.09 million in July.
The jobless rate for the EU27 was 9%, up from 8.9% in June. There were 21.8 million people out of work in the region by the end of July. The jobless rate was the biggest since May 2005.
Spain, Latvia and Lithuania logged the highest jobless rates, while the Netherlands, Austria and Cyprus had the lowest rates in July.
A separate report from Germany's Federal Labor Agency showed that the number of unemployed unexpectedly fell in August. The seasonally adjusted number of unemployed fell for the second month in August after rising the most in March. The number fell 1,000 following a revised fall of 5,000 in July. It was expected to rise by 30,000.
Without the calculation change adopted in July, the jobless number would have risen by 25,000 in August, the labor agency said. At the same time, the jobless rate stood at 8.3% in August, unchanged for the second month. Economists had forecast a slight rise in the rate to 8.4%.
Another report from Germany's statistical office showed that the ILO jobless rate was stable at 7.7% in July.
Falling number of German unemployed amid signs of global recovery may reduce the pressure on Chancellor Angela Merkel when she faces elections in September.
Despite major Eurozone economies like Germany and France exiting recession in the second quarter, rising number of people out of work would prompt the region's authorities to continue their massive stimulative measures. But, a timely exit from these measures is advised because the huge fiscal spending plans raise debt burdens of many countries.
The European Union has set a fiscal deficit ceiling of 3% of gross domestic product for its member countries.
German Finance Minister Peer Steinbrueck called for an internationally coordinated exit strategies from fiscal stimulus measures at the G-20 meeting to be held in London on September 4 to 5.
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