Eurozone unemployment rate ticks lower in September

The unemployment rate ticked down to 6.6% from an upwardly-revised 6.7% in August, in line with expectations. In September 2021, the unemployment rate stood at 7.3%.

In the EU, the unemployment rate was stable in September at 6%, and down from 6.7% a year earlier.

The number of people out of work in the euro area declined by 66,000 following an 11,000 drop in August.

Melanie Debono, senior Europe economist at Pantheon Macroeconomics, said: “The labour market remained robust in the face of the economic slowdown; this will embolden the European Central to keeping its foot firmly on the hiking pedal in light of astronomically high inflation.”

She said the fall in the number of people out of work in the eurozone suggests the slowing pace of decline in unemployment since mid-2021 may be reversing.

“Data yesterday, from Germany, which showed a slower increase in jobless claims in October imply the same. But we doubt that EZ unemployment is about to start falling sharply again.

“After all, survey data suggest that demand for labour is waning, and we still think unemployment will increase to year-end as the downturn intensifies. A big increase will be avoided though, given fiscal support, not least in the form of short-time work schemes.”