Unemployment in the eurozone has risen by 3.17 million since June 2008 Eurozone unemployment hit 9.4% in June - the highest in 10 years and another sign of the economic slowdown. The number of jobless grew by 158,000 during the month, taking the total number of unemployed in the area using the euro to 14.9 million. The figures came as separate data showed that inflation had declined more than expected in the eurozone in July. Consumer prices in the 16-nation area fell a record 0.6% compared to a year earlier, according to Eurostat. It was the second month in a row of falling prices following June's decline of 0.1%. EUROZONE JOBLESS Lowest unemployment rate in the Netherlands: 3.3% Highest unemployment rate in Spain: 18.1% Overall eurozone youth unemployment (under 25s): 19.5% Lowest youth jobless rate in the Netherland: 6.3% Highest youth jobless rate in Spain: 36.5% "That is the lowest inflation rate for the 16 countries sharing the euro in more than 50 years," said economist Martin Van Vliet of ING. He said it should provide "a stark reminder" to the European Central Bank that inflation may fall further in the medium-term. 'Inflexible labour market' As consumers lose their jobs and tighten their belts, this leads to lower spending. To attract customers, retailers have been cutting prices further. The European Central Bank predicts that consumer prices will decline for a few months due to the comparison with record high oil and food costs a year earlier. Eurostat has calculated that 3.17m people living in the eurozone have become unemployed since June 2008, when the unemployment rate was 7.5%. Analyst Juergen Michels of Citigroup said: "We expect in the coming months to see further increases in unemployment and that is likely to have a negative effect on consumption." Spain was particularly badly hit with unemployment up 18.1% in June, and a youth unemployment rate of 36.5%. Economist Jorg Radeke of the CEBR said the country was suffering from a "collapse in the construction sector and an inflexible labour market".



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