Commentary Directory

Euro Area Employment: August 2023

Jacob Hess
October 02, 2023

Euro Area Employment

10/2/2023 (August 2023)

6.4% (-0.1 ppts)

Below Expectations

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Youth Unemployment Rate 13.8% (-0.1 ppts)

In August 2023, Eurostat reported a decline in unemployment rates across the euro area and the EU. The euro area's seasonally-adjusted unemployment rate dropped to 6.4%, a decrease from 6.5% in July 2023 and 6.7% in August 2022. The EU's rate also fell to 5.9% from 6.0% in July and 6.1% a year ago. Overall, unemployment decreased by 107,000 in the euro area and 112,000 in the EU compared to July 2023. Youth unemployment remained stable in the EU at 14.0% but dipped slightly in the euro area to 13.8%. Gender-wise, unemployment rates remained stable in the EU but showed a slight decrease in the euro area, with women's unemployment at 6.7% and men's at 6.1%.

From Eurostat

Unemployment in the euro area is back at historic lows despite the conditions of the economy. This is strong evidence of shortages still existing in the labor force which is not good news for the ECB. As a result, we should continue to see broad support for high wage growth which could stoke inflation concerns.