Europe finally creates more jobs

Unemployment falls for the first time since 2011, but it's a tiny improvement: More than 19 million are still out of work.

By Jason Notte Aug 1, 2013 9:16AM
People wait in line outside an office to register for job placement in Madrid, Spain on April 25, 2013 (© Andres Kudacki/AP Photo)There are two ways to look at Europe's current employment situation: It should either be celebrating World Cup-style in the streets because jobless numbers are finally down, or incredibly nervous because more than 19 million Europeans are still looking for work.

Given how the eurozone has reacted since the start of the financial crisis, we're assuming they'll take the latter option. Figures from Eurostat, the EU's statistics office, indicate the number of unemployed in the 17 European Union nations that use the euro currency fell by 24,000 in June to 19.27 million. That's not much, but it's the first drop since April 2011.

Before folks even consider declaring an end to the European recession and debt crisis, it may be best to wait on next month's figures. Those are expected to show modest growth during the second quarter, thanks mainly to a rebound in Germany, Europe's economic juggernaut.

Production has stopped tailing off as well, with Spain just about ending its recession in the second quarter. There's even hope that problem child Greece could start growing again by year-end, even though its production has already decreased nearly 20%.

Even with the recent drop, however, joblessness across the region has increased by 1.13 million over the last year. It's still absolutely abysmal in the most affected countries. Spain's unemployment fell, but only from 6 million to 5.96 million. That scarcely changed the unemployment rate, which now sits at 26.3% compared to 26.4% last month.

Even though the eurozone's overall unemployment rate beat estimates, it's still at a record-high 12.1%. The rate of inflation has also stalled at 1.6%, below the European Central Bank's 2% goal. That makes the bank wary of dropping its interest rate from its record low of 0.5%.

The latest jobs numbers don't exactly reflect a pillar of stability. But for a region that has spent years with both its labor situation and finances heading in the wrong direction, they're a start.

More on moneyNOW

Aug 1, 2013 11:13AM
FACT all these highly indebted nations, US included, are cheating their populations through inflation. They are doing two things; 1. the are driving down the value of their currencies which hurts everyone, 2. by creating inflation they are hoping to drive up the cost of wages so you pay more taxes and get pushed into a higher tax bracket. Tax bracket numbers do not adjust for inflation.

They are cowards who have figured out how to cheat people out of their money without having to vote for higher taxes.
Aug 1, 2013 10:47AM
New World Order will keep any improvement for the working class well out of reach.  The design is only about half way finished in Europe.  Folks have to be reprogrammed to work.  Three hour days and 3 months vacation per year all need to be rinsed out of the Euro mentality.  Takes a long time to break folks off of free money.  Any traction in jobs may look good for a moment until the Internationals just bring more stuff in from the Asian Rim and set them down abruptly.
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