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| Unemployment Malaise Lingers in Euro Zone | Unemployment Malaise Lingers in Euro Zone |
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| PARIS — The labor market in the euro zone remains in the doldrums, official data showed on Tuesday, as the unemployment rate ticked higher in France and rose to a record in Italy. | PARIS — The labor market in the euro zone remains in the doldrums, official data showed on Tuesday, as the unemployment rate ticked higher in France and rose to a record in Italy. |
| The jobless rate in the 18-nation currency bloc stood at 11.9 percent in February, unchanged from January’s revised figure and flat since October, according to a report by Eurostat, the statistics agency of the European Union. | The jobless rate in the 18-nation currency bloc stood at 11.9 percent in February, unchanged from January’s revised figure and flat since October, according to a report by Eurostat, the statistics agency of the European Union. |
| About 25.9 million people remained without work across the 28-nation European Union, Eurostat estimated, out of a potential labor force of about 244 million. | About 25.9 million people remained without work across the 28-nation European Union, Eurostat estimated, out of a potential labor force of about 244 million. |
| There was one bright spot in the data released Tuesday: The number of unemployed people in the European Union fell by 65,000 from January. The monthly data do not provide a detailed breakdown explaining the decrease. | |
| While that figure was an encouraging sign, it did not affect the jobless rate for the euro zone. It did, however, nudge down the unemployment rate for the broader European Union to 10.6 percent in February from the revised 10.7 percent in January. | |
| Clemente De Lucia, an economist at BNP Paribas, said that the continuing disappointments from the labor market were not surprising, even though other recent indicators, like surveys of purchasing managers, have suggested that the economy remains in an expansionary phase. | |
| He noted that new hiring was a lagging indicator, as businesses in many European countries face substantial legal barriers to shedding jobs in a downturn and are cautious about adding workers. Thus the economy may have to pick up some steam before hiring can take off. | |
| The European economy officially rose out of recession in the second quarter of 2013, but the labor market remains in poor health more than five years after the credit crisis struck in 2008, followed by a crisis of confidence in a number of euro zone countries and in the common currency itself. | The European economy officially rose out of recession in the second quarter of 2013, but the labor market remains in poor health more than five years after the credit crisis struck in 2008, followed by a crisis of confidence in a number of euro zone countries and in the common currency itself. |
| European leaders responded to those crises with austerity measures — the policy of budget discipline — the only remedy that Germany, with the union’s largest economy, would accept. | European leaders responded to those crises with austerity measures — the policy of budget discipline — the only remedy that Germany, with the union’s largest economy, would accept. |
| That policy, which gave the European Central Bank enough cover to promise unlimited action in support of the euro, has calmed the markets. But the decline in government spending also hammered overall demand, undermining employment and reducing inflationary pressures. | That policy, which gave the European Central Bank enough cover to promise unlimited action in support of the euro, has calmed the markets. But the decline in government spending also hammered overall demand, undermining employment and reducing inflationary pressures. |
| Markets were upbeat after the report, with the euro rising 0.2 percent to $1.3802 and the Euro Stoxx 50 index, which tracks blue-chip stocks, adding about half a percent in Paris afternoon trading. | Markets were upbeat after the report, with the euro rising 0.2 percent to $1.3802 and the Euro Stoxx 50 index, which tracks blue-chip stocks, adding about half a percent in Paris afternoon trading. |
| In Italy, the jobless rate reached a record 13 percent in February from 12.9 percent a month earlier. The rate is the highest documented by Istat, the Italian national statistical agency, in records that date to the beginning of 1977. The country’s new prime minister, Matteo Renzi, is hoping an aggressive policy change will restart the faltering economy. | |
| Michel Martinez, an economist at Société Générale in Paris, said that many Italian companies had tried to hold onto their employees through thick and thin, but that many remained under pressure to cut workers to restore weakened profit margins. | Michel Martinez, an economist at Société Générale in Paris, said that many Italian companies had tried to hold onto their employees through thick and thin, but that many remained under pressure to cut workers to restore weakened profit margins. |
| The Italian jobless rate is probably near its peak now, Mr. Martinez said, but will remain high for some time because of the poor state of the country’s economy. | The Italian jobless rate is probably near its peak now, Mr. Martinez said, but will remain high for some time because of the poor state of the country’s economy. |
| In France, the jobless rate ticked up to 10.4 percent from 10.3 percent in January. Unemployment was the biggest factor in the drubbing that President François Hollande’s government received in municipal elections this past weekend, which led to the ouster of Jean-Marc Ayrault as prime minister in favor of Manuel Valls, the former interior minister. | In France, the jobless rate ticked up to 10.4 percent from 10.3 percent in January. Unemployment was the biggest factor in the drubbing that President François Hollande’s government received in municipal elections this past weekend, which led to the ouster of Jean-Marc Ayrault as prime minister in favor of Manuel Valls, the former interior minister. |
| The labor market in Greece remained the worst in Europe, with joblessness at a depression-level 27.5 percent. Spain, at 25.6 percent, was not far behind, but the market there is showing a glimmer of hope, edging down from 25.8 percent in January. | The labor market in Greece remained the worst in Europe, with joblessness at a depression-level 27.5 percent. Spain, at 25.6 percent, was not far behind, but the market there is showing a glimmer of hope, edging down from 25.8 percent in January. |
| Austria registered the lowest unemployment rate in the union, at 4.8 percent, followed by Germany, at 5.1 percent. In addition to relatively strong economies by current European standards, the two countries have extensive work-sharing programs that help to hold down the figures. | Austria registered the lowest unemployment rate in the union, at 4.8 percent, followed by Germany, at 5.1 percent. In addition to relatively strong economies by current European standards, the two countries have extensive work-sharing programs that help to hold down the figures. |
| The European Central Bank’s Governing Council is to meet on Thursday to plot monetary policy. In addition to the dismal employment report, the central bank will be considering a report that was issued on Monday showing consumer prices rising at an annual rate of just 0.5 percent, suggesting that the euro zone is on the verge of outright deflation. | The European Central Bank’s Governing Council is to meet on Thursday to plot monetary policy. In addition to the dismal employment report, the central bank will be considering a report that was issued on Monday showing consumer prices rising at an annual rate of just 0.5 percent, suggesting that the euro zone is on the verge of outright deflation. |
| The European situation contrasts with that of the United States, where the unemployment rate stood at 6.7 percent in February and where the economy has been adding an average of 189,000 new posts each month over the past 12 months. The Labor Department is poised to release jobs data for March on Friday. | The European situation contrasts with that of the United States, where the unemployment rate stood at 6.7 percent in February and where the economy has been adding an average of 189,000 new posts each month over the past 12 months. The Labor Department is poised to release jobs data for March on Friday. |
| Mr. Martinez, of Société Générale, forecast that the gross domestic product of the euro zone would increase by 1.1 percent this year. Even assuming that slow a recovery, he said, the unemployment rate would most likely end the year around the current level. | Mr. Martinez, of Société Générale, forecast that the gross domestic product of the euro zone would increase by 1.1 percent this year. Even assuming that slow a recovery, he said, the unemployment rate would most likely end the year around the current level. |
| Partly, that would reflect the return of workers who had given up on finding a job altogether, he said. The pool of discouraged workers — young people who dropped out of the job market to return to school, and long-term unemployed people in countries like Spain, Italy and France — will swell the ranks of the officially jobless as hiring picks up, keeping the official jobless rate at elevated levels, he said. | Partly, that would reflect the return of workers who had given up on finding a job altogether, he said. The pool of discouraged workers — young people who dropped out of the job market to return to school, and long-term unemployed people in countries like Spain, Italy and France — will swell the ranks of the officially jobless as hiring picks up, keeping the official jobless rate at elevated levels, he said. |