According to data released on Thursday by the EU’s Eurostat statistics office, unemployment rates in the eurozone reached a record low of 6.5 percent in October. The figure, which was the lowest since Eurostat started monitoring unemployment rates in April 1998, demonstrated that the 19 EU countries that use the Euro had recovered economically from the Covid pandemic. The seasonally adjusted unemployment rate was significantly lower than the 7.3% reported a year ago.
In the 27-nation European Union, 12.95 million people, or 6% of the working-age population, were reported to be unemployed in October. Of these, 10.87 million people resided in the eurozone. The economies of the Organization for Economic Cooperation and Development (OECD) members have all grown to their pre-pandemic size, with the exception of Britain, a former member of the EU, but the recovery is being slowed down by global headwinds. According to the European Commission, the eurozone will experience a recession in the coming weeks.
Even though it has decreased since the most recent report on Wednesday, inflation is still high at 10%, exceeding the ECB’s target rate of 2%. Rising energy costs as a result of the fallout from Russia’s war in Ukraine are partially to blame for this. According to a Purchasing Managers’ Index (PMI) survey published by S&P Global, business activity has been declining for five straight months, but the rate of decline slowed in November.
Young people had the highest unemployment rates in the EU and its eurozone, at respectively 15.1% and 15.0 percent, according to Eurostat. Germany, which has the largest economy in the eurozone, had an unemployment rate of 3.0 percent, which is a decrease from 3.3 percent in October 2021. In France, the second-largest economy, it fell from 7.6 percent a year earlier to 7.1 percent.