Unemployment in the euro zone reaches an all-time high

NEW YORK - April 2, 2013 - PRLog -- New York, NY- In further evidence that the problems in the Euro-zone are deteriorating, the number of people unemployed increased by 33,000 in February 2012, reaching a staggering 19.07 million, or 12%, according to the statistics agency Eurostat.

The jobless figures vary from country to country, but no matter what view one takes, the statistics are quite dire. For instance, Spain's unemployment rate rose again, hitting 26.3% in February, while the rate in Portugal remained stable at a high17.5%. In Greece, where the last available figures are as of December 2012, the unemployment rate was an astonishing 26.4%.

The lowest rates were recorded in Austria at 4.8% and Germany at 5.4%, both unchanged from January.

The newest high in the unemployment rate “confirms the underlying weakness of the economic environment in the Euro-zone" said Steve Picarillo, lead analyst at SJP Financial Consulting. The globally recognized analyst and author continued, “These numbers really are not a surprise, given the conditions of the banking and manufacturing sectors, in many of countries of the Euro-zone”. The most recent rise in unemployment was the 22nd consecutive monthly increase, making this downturn the most protracted since the 1990s.

Key Global Unemployment Rates

Greece   26.4%
Spain     26.3%
Portugal 17.5%
Italy       11.6%
France   10.8%
Germany5.4%
US         7.7%
Source: Eurostat

Part of the weakness can be attributed to the contraction in the Euro-zone manufacturing purchasing managers' index (PMI), which fell in March to 46.8, from the 47.9 recorded in February. Germany and the Republic of Ireland both fell below 50, while the rate of decline accelerated in all other Euro-zone countries, with the exception of France. A PMI score less that 50 indicate a contraction.

The survey further confirms the correlation between output and new orders and the jobless rate. Output deceased while unemployment  increased. “The substandard numbers in the manufacturing sector has likely been a hindrance on the economy in the first months of 2012 and the increasing rate of decline in March suggests that there could be additional weakness in the second quarter," Mr. Picarillo continued.

The Euro-zone economy has contracted for the past three consecutive quarters, indicating the second quarter of official recession. Given the recent statistics from across the zone, additional weakening is likely before any recovery is seen. The austerity programs put forth by many governments, as they struggle to control high deficits and rising debt levels, further exacerbate the recessionary environment. Mr. Picarillo concluded his comments, “Given the headwinds, I expect that the short-term outlook will be quite bleak, however, I remain hopeful that the end of the year, will look better. Time will tell.

About the author, Steve Picarillo is an internationally known financial analyst and author. Steve has spent most of his career on “Wall Street” as a lead analyst covering global financial institutions. Mr. Picarillo recently launched several businesses, including consulting services to large financial institutions and a cost savings consulting service designing cost savings solution for small and mid-sized companies. Steve is also a branding expert, motivational speaker and an expert on the global economic environment.

To receive Steve’s newsletters and articles emai "join" to l steve@stevepicarillo.com. Company websites are www.stevepicarillo.com and www.creativeadvisorygroup.com