Amsterdam: Eurozone unemployment unexpectedly declined in October to the lowest level in more than seven years, signalling that companies are confident in the region’s slow but steady recovery.
The joblessness fell to 9.8 per cent from a revised 9.9 per cent in September, the European Union’s statistics office in Luxembourg said on Thursday. That’s the lowest since July 2009. Economists in a Bloomberg survey predicted the rate would remain unchanged at a previously reported 10 per cent.
The faster-than-anticipated decline in unemployment comes as European Central Bank officials urge governments to step up efforts to encourage job creation and strengthen economic resilience in the region. With inflation still well below their target of just under 2 per cent, policymakers are considering whether and how to extend a bond-purchase program beyond its scheduled end in March. The Governing Council holds its next meeting on Dec. 8.
ECB President Mario Draghi renewed his call for economic adjustments in a speech on Wednesday in Madrid, arguing that monetary policy is providing “support and space” for change. “It is up to Euro-area governments to act, individually at national level as well as jointly at European level,” he said.
Industrial output in the 19-nation region expanded at its strongest pace in almost three years in November as a decline in the euro and improved business conditions helped counter geopolitical uncertainties. A Purchasing Managers’ Index for manufacturing rose to 53.7 from 53.5 in October, IHS Markit said on Thursday.
Data this week also showed that Eurozone inflation accelerated to 0.6 per cent in November, the fastest pace in more than 2 years. An index of economic confidence increased to the highest level this year.
Unemployment in Germany stood at 4.1 per cent in October, while in Spain, 19.2 per cent of workers were out of a job.
