Unemployment drops to a 12-year low in the Eurozone in February

Unemployment drops to a 12-year low in the Eurozone in February

  • Eurozone unemployment rate drops to 7.3% in February.
  • Unemployment in the broader EU records at 6.5% in February.
  • Eurozone final manufacturing PMI registers at 44.5 in March.

Eurostat released its monthly report on the Eurozone unemployment rate on Wednesday. The data showed unemployment to have dropped in February to a record low in the past 12 years. According to economists, however, data for the subsequent months is expected to be worse as the Coronavirus containment strategies including business shutdowns and nationwide lockdowns were implemented in the Eurozone in March.  

Wednesday’s data recorded unemployment in the 19 countries included in the Eurozone at 7.3% in February; a level that was last seen in March 2008. Eurozone unemployment rate was previously noted at 7.4% in January and experts had forecast the rate to remain unchanged in February.

Unemployment Records At 6.5% In The Broader EU

In the broader European Union that covers data from 27-member states, the unemployment rate was recorded at 6.5% in February that remained unchanged from January. February’s unemployment rate in the EU also marks the lowest since record-keeping started in February 2000.

As per the Eurostat’s estimate, the wider EU had 13.984 million people unemployed in February while 12.047 million were located in the Eurozone. The Eurozone saw a decline of 88,000 people while the EU reported a decline of 62,000 in terms of unemployed in February.

In the unemployment data, Czech Republic and Netherlands came at the lower end with 2.0% and 2.9% unemployment respectively while Spain and Greece were reported at the upper end with 13.6% and 16.3% unemployment respectively in February.

IHS Markit’s Final Manufacturing PMIs

In separate news, IHS Markit also released its final monthly figures for manufacturing PMI in France, Germany, and the Eurozone on Wednesday. The data recorded French manufacturing PMI to have improved to 43.2 in March versus 42.9 in February.

In Germany, the manufacturing PMI dropped slightly to 45.4 in March from 45.7 that was recorded in February. Finally, in the greater Eurozone, the manufacturing PMI registered a marginal drop to 44.5 in March as compared to February’s 44.8.

In the forex market, the EUR/USD currency pair remained strongly bearish on Wednesday. The pair opened at 1.1030 and slipped down to the 1.0915 level. According to technical analysts, the pair is now likely to face a short-term resistance around 1.0980 region. On the downside, it has created support at 1.0885 level. Breaking above the 1.0980 resistance will open way for the currency pair to recover back to 1.1040.

By Wajeeh Khan
Mr. Khan specialises in Public Health by academia but is a trader by passion. Taking up two new hobbies of writing and trading in his teen years, he is now a professional trader and news writer with over 5 years of experience in various financial markets. Khan is passionate about bringing insightful articles to his readers and hopes to add value to their portfolios.

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