Euro zone jobless rate falls to record low in Dec 2021

BRUSSELS (Reuters) – Eurozone unemployment fell to its lowest level on record in December, data showed on Tuesday, testament to the strength of the economic recovery and the effectiveness of part-time work schemes used to preserve jobs during pandemic lockdowns.

The European Union’s statistics office Eurostat said the unemployment rate in the 19 countries sharing the euro fell to 7.0% of the workforce from a revised 7.1% in November — the lowest rate on record since measurements started in April 1998.

Economists polled by Reuters had expected a 7.1% jobless rate. Eurostat said 11.481 million people were without jobs in the euro area in December, down by 185,000 people from November.

The record low unemployment number is likely to be a factor adding to already high inflationary pressures caused by supply chain bottlenecks as the world economy rebounds sharply from the recession caused by the coronavirus pandemic.