Eurozone jobless at record high

 
City A.M. Reporter
Eurozone unemployment hit a record high of 18.2m in August, according to data published today by the European Union.

Month on month, the number of unemployed people in the euro-area rose by 34,000 in August.

The unemployment rate was up 1.2 per cent year on year to 11.4 per cent, with southern European economies such as Spain and Greece continuing to struggle with people out of work.

Andrea Broughton, principal research fellow at the Institute for Employment Studies, said today it seemed “unlikely” that unemployment across the Eurozone would “fall anytime soon”.

Meanwhile, production across the Eurozone fell for the seventh consecutive month, according to figures from Markit.

The manufacturing Purchasing Managers’ Index remained below the 50 mark for the fourteenth successive month, indicating a contraction.

Nida Ali, economic advisor to the Ernst & Young ITEM Club, said today: “The Eurozone crisis is weighing heavily on the manufacturing sector through various channels.

“Weak export demand from Europe and low business confidence is discouraging firms from investing, and the possibility of a further escalation of the crisis cannot be ruled out.”