A solid growth in the eurozone in the second quarter failed to alter the unemployment rate which remained flat for a fourth consecutive month in July. The figure reflects a gap between the stronger economies led by Germany and the “peripheral” group including Spain.
While Germany’s unemployment rate remained flat and even pointed to a small decline in joblessness, other countries’ unemployment rose. Spain saw its unemployment rise to 20.3%, the highest figure ever seen in a eurozone country since the introduction of the euro in 1999.
In Germany business confidence rose to its highest level in August for more than three years and consumer confidence is following a similar trend. The country released its first estimates for August unemployment which showed a drop of 17,000 to 3.19m. Germany’s unemployment has been falling for over a year.
Though overall activity in the eurozone has picked up since early-2010, analysts warn that there remains a rise that eurozone unemployment will rise again later in 2010 and 2011.
