GMO-Global.com : Eurozone Unemployment At Record High.
Added: (Sun Feb 03 2013)
Pressbox (Press Release) -
According to analysis allegedly reviewed by GMO-Global.com, the average unemployment rate across the 17 EU member states that make up the euro zone reached 11.7 percent, with the 18.8 million people jobless being the highest since the launch of the Euro in 1999. Across the wider EU, the jobless rate reached 10.7 percent.
GMO-Global.com reportedly conveyed to investors that at a time when fears over the collapse of the single currency due to runaway government debt levels seems to have receded, the figures highlight the difficult task facing finance ministers as the EU economies struggle to expand. Although tough austerity measures have been undertaken across the EU, a move to help stimulate the economy, such as relaxing labor restrictions and increasing skill levels, takes time to implement and to see results.
The unemployment rate in the euro zone is predicted to continue to rise in the near future, likely to reach around 12.5 percent in the first quarter of 2014, according to a research note purportedly reviewed by GMO-Global.com, Governments are continuing austerity measures and coupling them with increases in tax rates, so job creation will likely remain sluggish.
On a more positive note for the EU, new data shows that there was an improvement in economic sentiment during the end of the year. A rise of 1.3 points in the economic sentiment indicator, up to 87, shows reflects improved consumer confidence across the whole economy.
GMO-Global.com note apparently ascribes this to improvements in the financial markets, such as Irelandís successful return to the bonds market after their bailout, but that with unemployment rates so high, any meaningful recovery is still months away.