Unemployment in Europe hit an all-time low since February 2009 but the state of youth unemployment sky rocketed. This worsens the already bad situation that is the uneven nature of Europe’s recovery.
According to the European commission, the rate of unemployment in the European Union dropped 0.1 percentage points to 8.3 per cent in November from 8.4 per cent in October. Seasonally adjusted youth unemployment, however, increased by 0.3 percentage points to 21.2 per cent in the Eurozone.
The Eurozone measure of unemployment remained at a constant rate of 9.8 per cent after, for the first time since 2011, falling below the 10 per cent mark. This unemployment measure in the Eurozone is closely monitored by the European Central Bank(ECB).
Unemployment in the Eurozone has been on a steady decline since its peak in 2013. However, the youth unemployment-particularly those aged between 18 and 25 who are not in jobs- still remains very high. For instance, in Spain, the rate of youth unemployment rose to an all-time high of 44.4 per cent in November.
Who is to Blame?
ECB president, Mario Draghi, has been very firm in his vindication that accommodative money policy as one of the key driving elements of the fragile European recovery.
UFX.com managing director, Dennis de Jong, said that, “However much the EU unemployment rate data remains unchanged from November, observers will take heart at the significant rise in investor confidence which follows a string of nascent positive numbers for ECB president Mario Draghi.”
Draghi repeated and assured of his commitment to ultra-lose monetary policy-not leaving behind an extension of the duration of quantitative easing-at the very last interest rate-setting meeting of the European Central Bank’s governing council. The ECB is cautious to avoid a re-enactment of the US “taper tantrum”. Bond proceeds surged in 2013 on the information that the Federal Reserve was withdrawing its quantitative easing program.