Eurozone unemployment hits record low, defying recession gloom

UNEMPLOYMENT in the euro area matched its lowest level on record in November, despite worries that the 20-nation bloc succumbed to a recession in the second half of last year.

The jobless rate dropped to 6.4 per cent from 6.5 per cent in October, Eurostat said on Tuesday (Jan 9), equivalent to almost 11 million people out of work in the region of more than 300 million.

The data underscore why the European Central Bank has no plans to start cutting interest rates anytime soon. Even amid the mild downturn, employers are struggling to find staff, pushing wages higher and creating upside risks for inflation.

A new labour hoarding indicator calculated by the European Commission and published on Monday held steady in December – above its average since 2011, but well below its pandemic peak. 

ECB policymakers don’t expect to lower borrowing costs before the middle of the year, later than investors are currently betting. BLOOMBERG