(RTTNews) - The euro area unemployment rate was unchanged at a record high in August as firms continued to scale back their operations in response to weak demand, data released by the statistical office Eurostat showed Monday.
The seasonally adjusted unemployment rate was 11.4 percent in August, unchanged from July and June that were revised from 11.3 percent. The latest figure was the highest on record and matched economists' expectations. In August 2011, the jobless rate in the single-currency bloc was 10.2 percent.
It is unrealistic to expect any turnaround in the near term at least in Eurozone jobless markets given the ongoing weakened economic activity and low business confidence, said IHS Global Insight's economist Howard Archer.
The number of unemployed persons in the euro area increased by around 34,000 to a record high 18.196 million in August.
In EU27, the unemployment rate remained steady at 10.5 percent in August. However, the August figure was higher than 9.7 percent recorded a year earlier. There were around 25.466 million unemployed persons in the EU27 during the month.
Among member states, the lowest unemployment rates were recorded in Austria, the Netherlands and Germany, and the highest in Spain and Greece.
Data from the Federal Labor Agency showed last week that the number of unemployed Germans rose by 9,000 in September from the prior month.
The Purchasing Managers' survey today showed that manufacturing sector downturn in the currency bloc eased in September. Job losses mounted and a reduction in employment was signaled for the eighth consecutive month.
The weak economic reports indicate clearly that the region is heading into a recession. Last week, Fitch Ratings forecast euro area to shrink 0.5 percent this year and to grow just 0.3 percent next year.
