Unemployment across the Eurozone has hit a record high with 18million people recorded out of work in July, the EU statistics agency said in its latest report.
An extra 18,002,000 figure is the highest level recorded since Eurozone records began in 1995. An extra 88,000 joined the ever expanding ranks of the unemployed throughout the course of July contributing the region wide level of 11.3%.
As usual the worst performing nations were Spain and Greece who each posted a figure of more than 50% unemployed in the under-25 demographic. Greece’s over 25 figure rose from 16.8% to 23.1% whilst Spain’s rose from 21.7% to 25.1%.
With an estimated 25.254m unemployed across the full European Union, which also includes non-euro heavyweights Britain and Poland, the figures add to concerns over a plunge back into recession for the Eurozone and its nearest neighbours.
The United Nations has warned that Europe is facing a catastrophe for its young people after predicting that unemployment could soar even more over the next few years as Europe unavoidably slides into recession. The UN predicts that unemployment could rise to a staggering 27.7% with jobless rates amongst the young rising to 51.3%. Portugal is also expected to suffer a crippling rise in unemployment. In Germany, Europe’s top economy, which is currently enjoying unemployment rates near record lows, close to one-in-10 would be without a job by 2014.
Economists are predicting that if the Eurozone does tear itself apart then unemployment would skyrocket in the aftermath with unemployment in Germany expected to rise to 11.3% ,France to 17% and Spain would suffer the consequences of having one out of three people unemployed by 2014.
“It would be a catastrophe for the European youth,” said Ekkehard Ernst, a senior economist of the United Nations International Labour Organisation. “The average unemployment rate in the 17 Eurozone member states would rise to 13pc,”
The highest unemployment rate in the Eurozone was in Spain, at 25.1%. The lowest was in Austria, at 4.5%.
The Pound to Euro exchange rate is currently trading at 1.258
The Pound to US Dollar exchange rate is currently trading at 1.587
The Pound to Australian Dollar exchange rate is currently trading at 1.537
The Euro to US Dollar exchange rate is currently trading at 1.261
The Euro to Pound exchange rate is currently trading at 0.794
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