Euro Area unemployment rate down to 7.4% in September

 Unemployment rate in the Euro Area declined marginally in September 2021, inching down to 7.4% from 7.5% in the previous month. The most recent figure is the lowest since April 2020, according to the seasonally adjusted data by Eurostat. The unemployment rate in the whole European Union, which is traditionally lower, declined at a faster rate: by 0.2 pp, reaching 6.7% in September.

The labour market in both the currency union and the EU follows a sustainable path of improvement since may 2021, providing support to the economic recovery. In absolute values, the unemployed people in the Euro Area were 12.1mn compared to 12.3mn in August. Youth unemployment among people aged 15-24 stood at 16% compared to 16.3% in August, while the share of unemployed aged between 25 and 75 was 6.6% in September, down from 6.7% in the previous month.

Youth unemployment is traditionally higher in the Euro Area and was a very severe issue during the Euro Area sovereign debt crisis, especially in the members states experiencing problems with their public finances. The reasons behind the high youth unemployment can be traced back to lack of flexibility on the labour market and too much red tape preventing younger graduates and professionals to enter the job market. Further, some generous state schemes for unemployment benefits discourages part of the population from seeking work.

The gap between male and female unemployment narrowed marginally in September, at levels of 7.1% and 7.7%, respectively. Read more

Read more in the quarterly report Euro Area Economy in a Snapshot - Q4 2021