Eurozone unemployment has risen to its highest level since the euro single currency was introduced, data showed on Tuesday, 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 percent 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 percent, and it is 23 percent 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 16.5 million 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. They are looking to deploy 82 billion euros of unspent funds from the EU's 2007-2013 budget in an attempt to boost employment. But most economists expect scant progress while the Eurozone's high debtors are compelled to persist with harsh austerity programmes.
A growing gap between the wealthy nations of northern Europe and those of the poorer, less productive south overshadows any EU-wide growth and jobs policies implemented from Brussels. Germany's unemployment rate fell to 6.7 percent in January, separate figures showed, a new record low since figures for unified Germany were first published. Austria boasted the Eurozone's lowest jobless rate at 4.1 percent in December, followed by the Netherlands at 4.9 percent.
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