The EU unemployment dropped to the lowest level in more than a decade

Unemployment in the Eurozone dropped in December to its lowest rate in more than a decade. The unemployment rate in the region dropped to 7.4% in December, considering its lowest level since May 2008, when the global financial crisis moved to the bloc, reported the EU Statistical Office Eurostat reported.

The EU-wide unemployment rate also declines from 6.3% in November to 6.2% in December 2019. This is the lowest unemployment rate recorded in the EU since Eurostat collected data – or since January 2000.

Among the Member States, the lowest unemployment rates in December 2019 were registered in the Czech Republic (2.0%), Germany and the Netherlands (3.2%). The highest rates were observed in Greece (16.6% in October 2019) and Spain (13.7%).

On an annual basis, the unemployment rate dropped in 21 Member States, remained unchanged in Denmark, and increased in Cyprus (from 7.4% to 7.6%), Slovenia (from 4.4% to 4.6%), Lithuania (5.8% to 6.1%), Portugal (6.6% to 6.9%), Luxembourg (5.2% to 5.6%) and Sweden (6.5% to 6.9%). The largest falls in unemployment were registered in Greece (from 18.5% to 16.6% between October 2018 and October 2019), Bulgaria (from 4.7% to 3.7%) and Croatia (from 7.3% to 6.4%).

In a separate message, Eurostat informs that economic sentiment in the Eurozone is improving in January after confidence among producers has risen to its highest level since August. The EC’s monthly survey showed that the economic sentiment indicator in the Eurozone rose to 102.8 points in January from 101.3 points recorded in December. In comparison, economists expected the measure to rise to just 101.8 points.

The improvement in business sentiment is driven by higher confidence in the industry, as plant managers are more optimistic about their production levels and finished product stocks.

The sector was heavily affected by US President Donald Trump’s trade policy last year, which led to a decline in global demand and, respectively, to a decline in new order levels.

Among the largest economies in the Eurozone, the sentiment indicator rises the most in Germany, the largest exporter of industrial goods in the bloc and the largest economy in the region. But overall, industry sentiment indicators remain below the medium and long term in both Germany and the euro area.

A more positive business sentiment may signal a stronger economy in the first quarter of 2020.