A sharp fall in the number of people in work in the euro zone in the first quarter left employment at its lowest level in more than seven years, official data showed Friday.
The figures underscore the longer term problems at the heart of the currency bloc's debt crisis and may temper recent optimism that its fortunes are turning a corner.
More timely indicators on the economy have suggested the euro zone's long recession may be nearing an end. But low levels of employment could put a brake on any economic recovery by limiting strength in consumer demand.
Eurostat, the European Union's statistics agency, said the number of people in work in the 17 nations that use the euro fell 0.5% in the first quarter compared with the last three months of 2012, the biggest quarterly drop since the second quarter of 2009.
The decline left 145.1 million people employed, the lowest level since the fourth quarter of 2005. The worst employment results were in Greece, where the number of people in work fell 2.3% quarter-on-quarter, and in Portugal, where it declined by 2.2%. Spain, Cyprus and Italy all saw falls in excess of 1%.
These countries' economies have been among the hardest hit by the region's fiscal and debt crisis. By contrast, more resilient economies with less significant debt loads, such as Germany and Austria, continued to register growth in employment.
Eurostat also confirmed its inflation readings for May, showing the annual rise in consumer prices across the euro zone accelerated to 1.4% in May from 1.2% in April. That remains significantly below the European Central Bank's medium- term target level, which is a little under 2%.
nasdaq.com
The figures underscore the longer term problems at the heart of the currency bloc's debt crisis and may temper recent optimism that its fortunes are turning a corner.
More timely indicators on the economy have suggested the euro zone's long recession may be nearing an end. But low levels of employment could put a brake on any economic recovery by limiting strength in consumer demand.
Eurostat, the European Union's statistics agency, said the number of people in work in the 17 nations that use the euro fell 0.5% in the first quarter compared with the last three months of 2012, the biggest quarterly drop since the second quarter of 2009.
The decline left 145.1 million people employed, the lowest level since the fourth quarter of 2005. The worst employment results were in Greece, where the number of people in work fell 2.3% quarter-on-quarter, and in Portugal, where it declined by 2.2%. Spain, Cyprus and Italy all saw falls in excess of 1%.
These countries' economies have been among the hardest hit by the region's fiscal and debt crisis. By contrast, more resilient economies with less significant debt loads, such as Germany and Austria, continued to register growth in employment.
Eurostat also confirmed its inflation readings for May, showing the annual rise in consumer prices across the euro zone accelerated to 1.4% in May from 1.2% in April. That remains significantly below the European Central Bank's medium- term target level, which is a little under 2%.
nasdaq.com
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