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.


Fungus the Photo! said...

Kleptocrats! How do we get poor economic decisions in high places? That benefit people "off stage"? Now we know. And the good news? Switzerland is now 100% surrounded by the EU. Hope they have enough food ....... !
Tax Fraud Investigation Opened Into French Minister Tasked With Battling Tax Fraud | Zero Hedge

We still have had no anti-bribery investigations in Ireland. Despite the evidence of economic mismanagement and blatant cronyism with banks. Thank God we are all so honest! A few more people would be employed in this way .... and a few high Panjandrums might lose their employment!

Fungus the Photo! said...

This is what sophisticated European bankers do: ask Kondratieff? Oh, apparently he was imprisoned and died, after proving capitalism is powered by the Phoenix! So we cannot ask him. But surely everyone knew that this time was no different? Japan in 1989, USA in 1999. But then those pesky terr'rists! Got to ZIRP! Time to make one last crank of the money machine and then retire .... many CEOs did exactly that. Without banking support their corporations could not survive.

Anonymous said...

So how high would unemployment be if the Irish were not leaving their home country in droves ?


Fungus the Photo! said...

It will continue to rise.

The FIRE sectors have been cushioned by NAMA, IFSC etc. These expensive "welfare for the connected" measures will cease once defaults start.

Mal-investments still rule!

The retail sector will also reduce, and the possibility that education adopts the internet???? Massive loss of employee positions!

Traditionally, infrastructure projects redeem employment in Depressions. Given the lack of awareness by politicians and that they are insulated, these measures are not available. I feel really sorry for you people: stupid, ignorant and greedy. Should make entertaining studies though, for future economists, whose numbers will also fall!