Unemployment rate in the Euro Area falls to yet another record low

The unemployment rate in the Euro Area kept falling in January, reaching as low as 6.8%, lates Eurostat data shows. This is the lowest figure on record. The same pattern goes for the EU as a whole, where the unemployment rate is even lower: 6.2%.

Unemployment rate reached as low as 6.8%

The labour market in both the currency union and the EU follows a sustainable path of improvement since May 2021, providing support to the economic recovery. As total number of people, the unemployment in the common currency block stood at 11.2mn compared to 11.4mn in December 2021. Youth unemployment among people aged 15-24 stood at 13.9% in January 2022 compared to 14.2% in December 2021.

Youth unemployment is traditionally higher in the Euro Area and was a severe issue during the Euro Area sovereign debt crisis, especially in the members states experiencing problems with their public finances. The reasons behind the high youth unemployment can be traced back to lack of flexibility on the labour market and too much red tape preventing younger graduates and professionals to enter the job market. Further, some generous state schemes for unemployment benefits discourages part of the population from seeking work.

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