[QODLink]
Europe
Eurozone jobless hits 10-year high
Unemployment reaches 9.5 per cent across the 16 euro countries as recession deepens.
Last Modified: 02 Jul 2009 22:02 GMT
Analysts say unemployment rates could rise further over the coming year [GALLO/GETTY]

Unemployment in the 16-nation eurozone has climbed to 9.5 per cent, its highest rate in a decade, EU data shows.

More than 15 million people are out of work across the zone, with about 273,000 jobs lost in May, the Eurostat data agency estimated.

The increase in people without work was expected, with the eurozone experiencing a 2.5 per cent drop in output in the first quarter of 2009.

Howard Archer, an economist at consultants IHS Global Insight, said: "Deep and extended economic contraction, depressed business confidence and deteriorating profitability is pushing unemployment up sharply across the eurozone."

The May eurozone unemployment rate was up from 9.3 per cent in April and 7.4 per cent in May 2008.

'Rates to rise'

Spain was shown to have the biggest jobless rate among eurozone nations, with 18.7 per cent unemployment.

The lowest unemployment rate was in the Netherlands, where only 3.2 per cent of the working population were without a job in May.

Meanwhile, in the 27-nation EU, the unemployment rate rose to 8.9 per cent in May, hitting the highest level since June 2005.

Eurostat estimated that in total 21.5 million people were  unemployed across the EU in May, of which 15 million were in the euro area.

Jennifer McKeown from Capital Economics, a research company, said the worst was not over for the job market.

"Survey measures of hiring intentions point to a further easing in the rate of job cuts to come," she said.

"But given that labour market developments tend to lag behind those in the wider economy, unemployment almost certainly has considerably further to rise. We expect the rate to reach about 12 per cent next year."

Source:
Agencies
Topics in this article
Organisation
Featured on Al Jazeera
UNHCR says hundreds of people trapped in Yaloke town risk death if they are not evacuated to safety urgently.
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
Featured
Long-standing dispute over Christian use of the word 'Allah' raises concerns about a very un-Merry Christmas.
The threat posed by ISIL has prompted thousands of young Kurds to join the PKK.
Baja California - with its own grim history of disappeared people - finds a voice in the fight against violence.
Russian feminist rockers fight system holding 700,000 - the world's largest per capita prison population after the US.
Weeks of growing protests against Muslims continue in Dresden with 15,000 hitting the streets last Monday.