Last year for the euro area was marked not only by a significant strengthening of the economy, but also by improving the situation in the employment market. This serves as a good support for the European regulator at a time when it reduces the volume of its stimulus program.
According to the latest report, unemployment in the region in late autumn was 8.7%, while a month earlier its value was 8.8%. In the reporting period, 107,000 citizens received jobs. Unemployment in the EU globally remains above those that are observed in other major economies of the world, but it has been at a minimum since 2009.
Unemployment will continue to decline, most likely this year, as the latest survey of industrial enterprises showed that they are ready to maintain a high rate of hiring a new workforce that has already reached a thirty-year high in order to meet the demand for its products.
Such dynamics of unemployment can not but please the regulator, which is aimed at heating up inflation to 2% due to salary growth. However, the reduction in unemployment has not yet supported him, and he remains restrained. The regulator believes that the unemployment rate is not so large as to take into account the whole situation with excessive resources in the employment market: for example, it results in jobs that are designed for part-time employment. At the same time, if you look at the details of the countries in the region, the situation with labor markets can vary considerably. For example, Germany was not particularly affected by the last financial crisis, and unemployment there is 3.6%, and this is even lower than the US, where the value of 4.1% is fixed. If you look at Spain, then unemployment is 16.7%, and the Italian has reached 11%. Citizens within the eurozone are not limited in their movements, and this explains the weak wage growth even in the region's leader, Germany.