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Eurozone unemployment hits 11.1%

Unemployment levels in the Eurozone hit 11.1%, the highest level since records began in 1995.

According to EU statistics body Eurostat, this represents an increase from April’s previous record rate of 11%, meaning that 17.56 million people are out of work across the continent.

The highest levels of employment were recorded in Spain, where one in four people were found to be out of work.

Over the past 14 months, joblessness has increased rapidly, as companies in the Eurozone have reduced or frozen spending levels following concerns over the impact of the ongoing debt crisis which have reduced confidence in future growth.

Commenting on the figures, IHS Global Insight economist Howard Archer said: “The further marked rise in Eurozone unemployment in May maintains belief that consumer spending will be generally muted in the near term at least, especially as consumers are also facing muted wage growth and tighter fiscal policy in many countries.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .