Feb. result: 8.7%
MNI Survey median: 8.7%
MNI Survey range: 8.7% to 8.8%
Previous result: 8.7% (revised from 8.8%)
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FRANKFURT (MktNews) - The seasonally adjusted unemployment rate in the 12 member states of European Monetary Union (EMU) was unchanged at 8.7% in February after the rate for January was revised down from 8.8%, the European Statistical Office Eurostat said Tuesday.
The result was in line with the median of expectations in a Market News survey among 24 analysts.
Of the nine EMU states reporting data, unemployment fell in three in February, remained unchanged in five, but moved up in one.
Spain continues to show the highest unemployment rate at 13.7% in February, unchanged from January. This was followed by Finland (9.2% after 9.3%), France (8.6% after 8.7%) and Germany (unchanged at 7.8%).
Four of the reporting countries had an unemployment rate below 5% in February. Luxembourg (2.0% after 2.1% in January) showed the lowest unemployment rate in February, followed by Austria (unchanged at 3.7%), Ireland (unchanged at 3.8%) and Portugal (4.5% after 4.4% in January).
February unemployment data for Italy, the Netherlands and Greece were not available.
Eurostat estimated that in February 2001, 11.8 million men and women were unemployed in the eurozone and 13.7 million in the EU15. The data are seasonally-adjusted in line with ILO criteria
The unemployment rate for the 15 states of the European Union was unchanged at 8.0% in February. The January rate was unrevised.
After some reduction in 2000, the eurozone unemployment rate seems to be stuck at a high level of almost 9%. Since the unemployment rate is a lagging indicator and eurozone growth was quite strong until summer 2000 the recent data signals that the growth rate needed to reduce the unemployment rate remains very high and that further structural reforms are needed to significantly reduce joblessness and increase employment in the eurozone.
Therefore monetary policy cannot be an appropriate remedy to cure this problem. Note, that despite the high overall unemployment rate some regions and in some segments of the eurozone economy are experiencing severe labor shortages.