The jobless rate across the thirteen nation eurozone remained unchanged at 6.9% through August at the lowest level ever, according to figures released today.

In the official EU Eurostat figures released today, the number of people out of work in the eurozone remained at a constant rate for the third consecutive month at its lowest level since early 1993 when the survey commenced.

Since reaching the heights of 8.9% three years ago, unemployment throughout the eurozone has fallen significantly to reflect the strengthening of the underlying economy, and in particular a marked turnaround in the fortunes of the German economy with demand for exports gaining strength.

The region’s largest economy had been experiencing sluggish performance until a turnaround saw it prop up eurozone-wide growth and overall output alongside a similar turnaround in fortunes from within the French economy since the election of President Sarkozy.

Importantly the sub-prime lending crisis seems not to have had any real effect on the health of the eurozone economy, with no indication as of yet that there could be any slowdown or overly prejudicial credit crunch environment.

The recent unrest in trading markets saw growth rates for the eurozone slashed by 0.1% down to 2.5%, as a reflection of the potential impact of a tighter credit environment and less favourable business conditions makes itself known throughout the eurozone.

The European Central Bank, responsible for determining eurozone monetary policy, are scheduled to meet imminently to determine the course of interest rates over the next month. It is predicted at present that rates will be held to allow current conditions to continue, although eventually it is predicted that rates will begin to rise to ease inflation.

In the wider European Union, unemployment was also down by 0.1% point to 6.7% in August, although only thirteen nations fall within the eurozone single economic entity.

Tags: European Economy News //