Eurozone Youth Unemployment Hits 24.4 Percent

The eurozone’s youth unemployment rate worsened last month to a new record high of 24.4% as under-25s in Spain, Italy and Portugal struggled to find work.

Spain’s youth unemployment rate increased to 57.4%, only marginally below Greece’s August high of 58%, which remains the highest rate of youth unemployment for any country in the eurozone’s history. Italy’s youth unemployment rate rose to 41.2%, from 40.5% the previous month. In Portugal, it rose to 36.5% from 36.2%.

The startling figures from southern Europe contrast with rates in the north where Germany has a 7.8% youth unemployment rate and the Netherlands an 11.6% rate.

But a small fall in the number of younger people out of work in the Netherlands and the country’s recent exit from a year-long recession failed to prevent it from being stripped of its AAA credit rating on Friday.

Ratings agency Standard & Poor’s said on Friday that weakening growth prospects showed the country would struggle to improve its financial stability and generate new jobs.

It said: “The downgrade reflects our opinion that the Netherlands’ growth prospects are now weaker than we had previously anticipated, and the real GDP per capita trend growth rate is persistently lower than that of peers.”

via theguardian.com

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza