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| European Jobs Market Still Stagnant, March Data Show | European Jobs Market Still Stagnant, March Data Show |
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| PARIS — The European labor market remains stagnant in spite of recent signs that growth might be ticking up, an official report showed Friday. | PARIS — The European labor market remains stagnant in spite of recent signs that growth might be ticking up, an official report showed Friday. |
| The jobless rate was 11.8 percent in March in the 18 nations that share the euro currency. The figure has been unchanged since December, after revisions to previous months’ data, according to a report from Eurostat, the statistical agency of the European Union. | The jobless rate was 11.8 percent in March in the 18 nations that share the euro currency. The figure has been unchanged since December, after revisions to previous months’ data, according to a report from Eurostat, the statistical agency of the European Union. |
| For the whole European Union of 28 nations, the jobless rate was 10.5 percent, unchanged from the revised February figure. | For the whole European Union of 28 nations, the jobless rate was 10.5 percent, unchanged from the revised February figure. |
| About 25.7 million people across the European Union, including 5.3 million young people, were counted as unemployed. That was down slightly from March, but not enough to change the unemployment percentage. | About 25.7 million people across the European Union, including 5.3 million young people, were counted as unemployed. That was down slightly from March, but not enough to change the unemployment percentage. |
| There have been signs that economic growth is accelerating in Europe, albeit from a very low base. An April survey of private sector purchasing managers showed the economy expanding at the fastest pace in almost three years. | There have been signs that economic growth is accelerating in Europe, albeit from a very low base. An April survey of private sector purchasing managers showed the economy expanding at the fastest pace in almost three years. |
| And investors have returned in force, once again buying the sovereign debt of Spain, Italy and other countries that took a beating during the euro crisis. On Friday, the yield on Spain’s 10-year government bonds fell below 3 percent for the first time since 2005. | And investors have returned in force, once again buying the sovereign debt of Spain, Italy and other countries that took a beating during the euro crisis. On Friday, the yield on Spain’s 10-year government bonds fell below 3 percent for the first time since 2005. |
| But the pace of job growth has been a drag on the euro zone, where the number of unemployed fell by only 22,000 compared with February and 316,000 compared with March 2013. | But the pace of job growth has been a drag on the euro zone, where the number of unemployed fell by only 22,000 compared with February and 316,000 compared with March 2013. |
| Employment is a lagging indicator, as employers — especially those bound by the rigid labor market rules common in many European countries — tend to hold out until their prospects are certain before adding to their work forces. | |
| Christian Schulz, an economist in London with Berenberg Bank, said in a research note that the economic recovery, which began in the second quarter of 2013, was “gradually feeding through to the labor market.” But while the number of unemployed has fallen by 310,000 since September, he wrote, at that meager pace it may take “years, if not decades” to restore the 7.5 million jobs Europe has lost since 2008. | Christian Schulz, an economist in London with Berenberg Bank, said in a research note that the economic recovery, which began in the second quarter of 2013, was “gradually feeding through to the labor market.” But while the number of unemployed has fallen by 310,000 since September, he wrote, at that meager pace it may take “years, if not decades” to restore the 7.5 million jobs Europe has lost since 2008. |
| Nonetheless, “it is a start,” he said. “We expect the labor market improvement to accelerate soon following stronger momentum in the economy since the beginning of the year.” | |
| Europe’s lowest jobless rates remained those of Austria, at 4.9 percent, and Germany, at 5.1 percent — both of which use work-sharing programs to hold down unemployment. Greece, at 26.7 percent in January — the latest figure available — and Spain, at 25.3 percent in March, continued to experience depression-level unemployment. | Europe’s lowest jobless rates remained those of Austria, at 4.9 percent, and Germany, at 5.1 percent — both of which use work-sharing programs to hold down unemployment. Greece, at 26.7 percent in January — the latest figure available — and Spain, at 25.3 percent in March, continued to experience depression-level unemployment. |
| France, where President François Hollande’s government has announced 50 billion euros, or roughly $69 billion, in new austerity measures to meet European Union fiscal targets, posted a 10.4 percent jobless rate. | France, where President François Hollande’s government has announced 50 billion euros, or roughly $69 billion, in new austerity measures to meet European Union fiscal targets, posted a 10.4 percent jobless rate. |
| The United States, in contrast, had an unemployment rate in March of 6.7 percent. Employment data Friday from Washington showed the jobless rate in April dropping to 6.3 percent and the economy adding 288,000 jobs, far better than economists had expected. | |
| Eurostat is scheduled to release first-quarter gross domestic product figures on May 15. Economists expect the euro zone economy to show first-quarter growth of 1.0 percent on an annual basis. That would put Europe ahead of the United States, after a report Thursday from Washington that showed the American economy expanded by just 0.1 percent in the first three months of the year. | Eurostat is scheduled to release first-quarter gross domestic product figures on May 15. Economists expect the euro zone economy to show first-quarter growth of 1.0 percent on an annual basis. That would put Europe ahead of the United States, after a report Thursday from Washington that showed the American economy expanded by just 0.1 percent in the first three months of the year. |
| The euro zone continues to fight serious headwinds besides the fragile labor market, including weak consumer demand. And very low inflation has raised fears of a potential period of Japan-style deflation — an economically debilitating condition in which prices and wages actually fall, removing many of the usual growth incentives. It also makes it more difficult for borrowers to repay their debts. | The euro zone continues to fight serious headwinds besides the fragile labor market, including weak consumer demand. And very low inflation has raised fears of a potential period of Japan-style deflation — an economically debilitating condition in which prices and wages actually fall, removing many of the usual growth incentives. It also makes it more difficult for borrowers to repay their debts. |
| Continued low inflation has left the European Central Bank under pressure to take action. Lending to real-economy companies has been shrinking for months, and a report Wednesday showed that consumer prices in April rose just 0.7 percent from a year earlier. That is well below the central bank’s official target of slightly less than 2 percent, and a worrisome sign that very low inflation may be getting entrenched. | Continued low inflation has left the European Central Bank under pressure to take action. Lending to real-economy companies has been shrinking for months, and a report Wednesday showed that consumer prices in April rose just 0.7 percent from a year earlier. That is well below the central bank’s official target of slightly less than 2 percent, and a worrisome sign that very low inflation may be getting entrenched. |
| Mario Draghi, the central bank’s president, has said that the E.C.B. is considering the use of the bond-buying policy known as quantitative easing, which is already employed by the Federal Reserve, the Bank of England and the Bank of Japan, to provide monetary stimulus. Such unconventional tools are one answer to the challenge of conducting central bank policy when interest rates, the traditional lever, are already near zero. | Mario Draghi, the central bank’s president, has said that the E.C.B. is considering the use of the bond-buying policy known as quantitative easing, which is already employed by the Federal Reserve, the Bank of England and the Bank of Japan, to provide monetary stimulus. Such unconventional tools are one answer to the challenge of conducting central bank policy when interest rates, the traditional lever, are already near zero. |