Eurozone unemployment hits 10%

EU jobs Apr10.pngThe rate of unemployment is an important leading indicator for chemical industry demand. It measures the number of people who currently don’t have much spare cash to spend on discretionary purchases. And when the jobless rate is rising, it also impacts the spending patterns of those still in work, as they often choose to save any spare cash ‘for a rainy day’.

February’s rise in Eurozone unemployment to 10% represents the highest rate since 1998, with 15.7m people now out of work. In the whole EU area, 23m people are now unemployed. Equally worrying is the fact that unemployment increased in all 27 member states.

Latvia, in the Baltics, has 21.7% out of work, Spain has 19% unemployed. And 20.6% of all under-25s are now out of work in the whole EU. The blog fears that these depressing numbers will rise further in 2010, as stimulus programmes end, and governments are forced by rising debt levels to reduce the public sector workforce.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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One Response to Eurozone unemployment hits 10%

  1. nys unemployment 2 May, 2010 at 4:27 am #

    In some cases, both employer and employee may be unaware that the familiar channel for unemployment benefits is not available to them.

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