PARIS — Europe’s labor market
remained stagnant in November,
official data showed Wednesday,
suggesting the region’s economy will
continue treading water in the new
year.
The unemployment rate in the euro
zone remained at 12.1 percent, a
level it has held since April, Eurostat,
the European Union’s statistics
agency, reported from Luxembourg.
The jobless rate was in line with
economists’ expectations. It had risen
from just under 10 percent in early
2011 to the current record level.
Eurostat had previously reported
that the rate hit 12.2 percent this
summer, but that figure has been
revised.
For the full European Union, made up
of 28 member states, the jobless rate
was unchanged at 10.9 percent.
Eurostat estimated that 26.6 million
across Europe were unemployed and
seeking work, 19,000 more than in
October.
More than five years after the global
financial crisis erupted, Europe’s
economy remains on fragile footing.
Consumers are wary of spending,
lending to businesses is contracting,
and investment, not surprisingly, is
weak.
Richard Barwell, an economist in
London with Royal Bank of Scotland,
estimated before the jobless data
were released that the euro zone’s
gross domestic product grew by just
0.2 percent in the fourth quarter of
2013. That would be equivalent to a
0.8 percent annualized rate.
Mr. Barwell forecasts that the euro
zone will manage quarterly growth
of about 0.3 percent in the first
quarter of the new year.
There have been some hopeful signs
in Europe lately, including a survey
of purchasing managers by Markit
Economics, which showed output
near the highest it has been for two-
and-a-half years. Ireland met strong
demand upon its return to the
international bond market Tuesday
after exiting its bailout.
Among the lowest unemployment
rates in Europe were in Austria, with
4.8 percent, and Germany, with 5.2
percent. Among the highest was
Spain at 26.7 percent. In Greece,
which is several months behind in its
reporting, the rate was 27.4 percent.
There were 17 euro zone members
for the period when the data were
tabulated. Eurostat will begin
including information for the newest
member, Latvia, which joined at the
start of the year, in the January data.
The report arrived on the eve of a
policy meeting of the European
Central Bank’s Governing Council.
The central bank in November
surprised markets by cutting its
benchmark interest rate to 0.25
percent from 0.5 percent, and
economists say it is too soon to expect
the bank to move on rates again this
week.
But the jobless data, and the danger
of deflation, will be important topics
for discussion in Frankfurt. Consumer
prices in the euro zone rose in
December at an annual rate of only
0.8 percent, Eurostat reported on
Tuesday — far below the E.C.B.'s
inflation target of 2 percent.
remained stagnant in November,
official data showed Wednesday,
suggesting the region’s economy will
continue treading water in the new
year.
The unemployment rate in the euro
zone remained at 12.1 percent, a
level it has held since April, Eurostat,
the European Union’s statistics
agency, reported from Luxembourg.
The jobless rate was in line with
economists’ expectations. It had risen
from just under 10 percent in early
2011 to the current record level.
Eurostat had previously reported
that the rate hit 12.2 percent this
summer, but that figure has been
revised.
For the full European Union, made up
of 28 member states, the jobless rate
was unchanged at 10.9 percent.
Eurostat estimated that 26.6 million
across Europe were unemployed and
seeking work, 19,000 more than in
October.
More than five years after the global
financial crisis erupted, Europe’s
economy remains on fragile footing.
Consumers are wary of spending,
lending to businesses is contracting,
and investment, not surprisingly, is
weak.
Richard Barwell, an economist in
London with Royal Bank of Scotland,
estimated before the jobless data
were released that the euro zone’s
gross domestic product grew by just
0.2 percent in the fourth quarter of
2013. That would be equivalent to a
0.8 percent annualized rate.
Mr. Barwell forecasts that the euro
zone will manage quarterly growth
of about 0.3 percent in the first
quarter of the new year.
There have been some hopeful signs
in Europe lately, including a survey
of purchasing managers by Markit
Economics, which showed output
near the highest it has been for two-
and-a-half years. Ireland met strong
demand upon its return to the
international bond market Tuesday
after exiting its bailout.
Among the lowest unemployment
rates in Europe were in Austria, with
4.8 percent, and Germany, with 5.2
percent. Among the highest was
Spain at 26.7 percent. In Greece,
which is several months behind in its
reporting, the rate was 27.4 percent.
There were 17 euro zone members
for the period when the data were
tabulated. Eurostat will begin
including information for the newest
member, Latvia, which joined at the
start of the year, in the January data.
The report arrived on the eve of a
policy meeting of the European
Central Bank’s Governing Council.
The central bank in November
surprised markets by cutting its
benchmark interest rate to 0.25
percent from 0.5 percent, and
economists say it is too soon to expect
the bank to move on rates again this
week.
But the jobless data, and the danger
of deflation, will be important topics
for discussion in Frankfurt. Consumer
prices in the euro zone rose in
December at an annual rate of only
0.8 percent, Eurostat reported on
Tuesday — far below the E.C.B.'s
inflation target of 2 percent.
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