The unemployment rate in the euro zone remained stable at 6.4% in August

This indicator is at its lowest level since Eurostat began compiling this series in April 1998. At the level of the European Union, the lowest rate was recorded in the Czech Republic (2.6%), the highest in Spain (11.3%).

The unemployment rate remained stable in August compared to July in the euro zone, at 6.4% of the active population, according to data published by Eurostat on Wednesday October 2. Despite sluggish economic growth, the indicator remains at its lowest level since the European Statistics Office began compiling this series in April 1998 for countries having adopted the single currency. Over one year, the rate of unemployed people fell by 0.2 points. For the European Union as a whole, unemployment fell slightly to 5.9% in August, compared to 6% in July, also its historic low.

The job market has generally held up well to the gloomy economic situation that has prevailed in Europe since the end of 2022. Economic growth is suffering from the increase in interest rates decided by the European Central Bank (ECB) to calm inflation which is was soared in the context of the war in Ukraine. The ECB has, however, initiated a rate reduction movement since June, noting that consumer prices were coming back under control. Inflation fell to 1.8% year-on-year in September, falling below the 2% target set by the monetary institution, for the first time in more than three years.

Unemployment had fallen significantly in Europe after mid-2021, thanks to the very strong economic recovery which followed the historic recession caused by the pandemic in 2020. The indicator has generally stabilized since spring 2023 at an unprecedented level in a quarter of a century. Some 13.03 million people were unemployed in August in the 27 EU member states, including 10.92 million among the twenty countries sharing the single currency.

However, there are significant disparities between countries. The unemployment rate stands at 7.5% in France, compared to 3.5% in Germany, according to harmonized Eurostat data. The lowest rates in the EU were recorded in the Czech Republic (2.6%) and Poland (2.9%). The highest were recorded in Spain (11.3%) and Greece (9.5%).

Eurostat data is based on the International Labor Office (ILO) definition of unemployment. Unemployed people are considered unemployed people who have actively looked for work in the previous four weeks and are available to start working in the next two weeks.