Eurozone unemployment shrinks to lowest since 2011

Unemployment in the Eurozone fell to 10.3% in January from 10.4% the month before, better than forecasts for it to remain the same and the lowest level since 2011, giving the European Central Bank some positive news to weigh against poor inflation and confidence data.

Unemployment for the wider European Union reached a low not seen since since 2009, with rate for the EU-28 group of countries dipping to 8.9% from 9% in December and 9.8% in the previous January, according to figures published by Eurostat, the statistical office of the European Union.

Greece and Spain's unemployment still topped an eye-watering 20%, dragging the average much higher than Germany's much improved 4.3% and the 6.5% in the Netherlands, though France's rate was at 10.2%.

Eurostat estimated that 21.79m men and women in the European Union, of whom 16.65m were in the euro-area,
were unemployed in January 2016.

Youth unemployment was highest in Greece at an astounding 48.0%, with Spain not much better at 45.0%, Croatia at 44.1% and Italy 39.3%.

Forex specialist Dennis de Jong at UFX said after two months of consecutive falls, ECB president Mario Draghi would be relieved to see employment data in the Eurozone improve.

"The ECB president won’t be getting carried away, however, as in the last week alone he has seen particularly poor inflation and confidence data. Wednesday’s producer price index numbers are also expected to follow suit," de Jong said.

"Global uncertainty, including a slumping Chinese manufacturing sector and the now-confirmed UK referendum on EU membership, will undoubtedly impact upon the EU economy in the coming months. Draghi will now need to ensure the euro is robust enough to weather the storms ahead."