Tuesday, January 8, 2013

8/1/2013: Unemployment in Europe: The Ugly

Euro area unemployment figures for November are out and the ugly, truly abysmally ugly reality of the EA17 economic conditions can no longer be hidden from view:

Per chart above, seven out of EU27 states have overall unemployment rates above 14%. A year ago, there were 5. 19 states had higher unemployment in November 2012 than in November 2011, 2 had identical rate and 6 have seen unemployment levels decline.

Just under 1/4 of all young people in the labour force in EA17 are now unemployed. This doesn't include: students held over in studies beyond their optimal studies duration by the prospect of not having a job, life-long young unemployed, emigrants and 'one-year visa-holders', and in some countries, this also excludes those who are 'engaged' in state training programmes.

In Greece, the rate is at 57.5% and in Spain it is 56.5%. In five out of 27 states, more than 1/3 of all youths in the labour force are now unemployed.

In Ireland - Europe's poster-boy for 'austerity' and recovery - the rate of youth unemployment (and recall that Ireland has the youngest population in the EA17) is now running at 29.7% (down from 30.5% y/y), the 7th highest rate in EU27.

In the 'Social Welfare' haven of Europe, 24.4% of younger people are unemployed. In the US the rate is 15.6%. Virtually every economy - save Germany - has unemployment rates for younger workers in excess of where they were at Euro introduction point.
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