Eurozone unemployment hits new record

 
City A.M. Reporter
Euro zone unemployment has risen to its highest level since the euro single currency was introduced, data showed, a day after EU leaders promised to focus on creating millions of new jobs to try to kickstart Europe's floundering economy.

Seasonally adjusted unemployment among the 17 countries sharing the euro rose to 10.4 per cent in December, on a par with an upwardly revised November figure, the European Union's statistics office Eurostat said.

It was the highest rate since June 1998, before the introduction of the euro in 1999.

"We're looking at a further increase over the coming months, so that is worrying," said Martin van Vliet, an economist at ING. "Look at Greece, where unemployment is some 20 per cent, and it is 23 per cent in Spain. At a certain point this could lead to political unrest."

After two years of a deep debt crisis and budget austerity, the number of Europeans out of work has risen to 16.5M people, with another 20,000 people without a job in December from the month before. The rate steadily crept up through 2011 as growth stalled and recession loomed.

At a summit on Monday, Europe's leaders tried to shift the debate from fighting the debt crisis to reviving growth in a bloc that produces 16 percent of global economic output.