- Published on Monday, 02 July 2012 14:29
- Written by RTT News
Eurozone unemployment rate hit a new record high in May as companies struggle to contain their costs in the midst of stringent competition and weak demand.
The jobless rate rose to a record 11.1 percent from 11 percent in April, Eurostat said Monday. The figure was in line with expectations.
The number of unemployed increased by 88,000 in May from the previous month. On a yearly basis, unemployment surged by 1.82 million. Around 17.561 million people were out of work during the month.
Compared with a year ago, the unemployment rate fell in eight member states, increased in eighteen, and remained stable in Hungary.
The EU27 jobless rate came in at 10.3 percent in May, compared with 10.2 percent in April. Spain has the highest jobless rate of 24.6 percent, followed by Greece with 21.9 percent.
Meanwhile, official figures released today showed that Italy's unemployment rate fell for the first time in sixteen months to 10.1 percent in May.
The unemployment rate for males increased to 10.9 percent from 9.8 percent in the previous year. Likewise, the female unemployment rate rose to 11.3 percent from 10.3 percent.
IHS Global Insight's economist Howard Archer sees the likelihood of Eurozone unemployment rate rising significantly higher over the coming months to hit 11.5 percent by the end of the year.
Elsewhere, the latest Purchasing Managers' data from Markit Economics signaled that the downturn in the manufacturing sector extended to an eleventh successive month in June.
The survey showed that manufacturing output declined for four successive months, while purchasing activity dropped at the steepest rate in three years. Reflecting bleak activity, employment fell at the fastest rate for nearly two-and-a-half years, with job losses signaled by all nations except Ireland.
by RTT Staff Writer