Last updated at 15:35 BST, Tuesday, 03 April 2012

Eurozone unemployment

Summary

3 April 2012

Unemployment in countries which use the Euro – the Eurozone - has increased according to new official figures. Over 17 million people, or 10.8 per cent of the workforce were unemployed in February.

Reporter

Andrew Walker

A Greek soup kitchen

A volunteer hands out free food at a Greek soup kitchen. Greece has a very high rate of unemployment.

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Report

The new figures from the European Union's statistical agency show the Eurozone's persistent economic problems. Aggressive action by the European Central Bank - in the shape of a trillion Euro of three-year loans to the financial institutions - has certainly brought relative calm to the markets.


But parts of the wider economy are still struggling. The number of unemployed across the Eurozone is nearly one and a half million higher than a year ago.


There remains a striking divergence between the region's struggling countries and the more successful ones. Unemployment is below six per cent in Austria, the Netherlands and Germany, but over 20 per cent in Spain and Greece. In both the latter countries, the unemployment rate for young people is over 50 per cent.


A separate private-sector survey of managers in industry points to a continued decline in manufacturing production. That adds to evidence suggesting the Eurozone economy as a whole may have contracted in the first quarter of the year, as it did at the end of 2011. If that does turn out to be the case it would be a recession.

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Vocabulary

statistical agency

organisation which collects and publishes data

persistent

continuing

in the shape of

in the form of

striking

remarkable

divergence

difference

the latter

last-mentioned

private-sector

companies not owned or run by the government

decline

process of getting worse

quarter

three months in a year

recession

period of reduced economic activity and higher unemployment (defined by economists as two consecutive quarters of economic decline)