Unemployment levels across Europe have skyrocketed, leading to the highest jobless rates in the euro zone in a decade. The figures refer to the 16 countries in Europe that use the euro, a currency that has done well during the global recession. Unfortunately, the job market hasn’t fared so well.
The unemployment rate has slipped to 9.2 percent, compared with 7.3 percent in April last year. The highest unemployment figures in the euro zone were observed in Spain, which has a current unemployment rate of 18.1%.
Across the EU, which includes some 27 member states, the figures also indicated a rise in unemployment. In these 27 countries unemployment rose to 8.6 percent in April, an increase of 2 points from the previous month. The European data analysis company Eurostat put the estimated number of unemployed in the EU at 20.8 million.
In 25 of the 27 EU countries, unemployment has risen in recent months, with only Romania and Greece experiencing a drop in unemployment. Although recent reports have suggested an increase in economic growth, it does not appear that this has reached the labor market yet.
Howard Archer of IHS Global Insight said: “It will be some time before any improvement in economic activity is passed down to help job prospects.
“Furthermore, we suspect that economic activity will remain too weak to generate overall jobs well into 2010.
“The deep and prolonged economic contraction, depressed business confidence and deteriorating profitability are increasingly being transmitted to fuel unemployment across the eurozone.”
Youth unemployment is a particular area of concern, with figures across Europe suggesting that 18.5 percent of those under 25 are out of work. Many graduates have had trouble finding a job despite having respectable qualifications, as employers take the safe option and prefer experience to youth and fresh ideas.
Graduates reported that in response to rising youth unemployment in the UK, they were encouraged to look for work abroad and return to the UK after the recession. This advice was endorsed by the National Union of Students and government agencies, despite the fact that the recession seems to be global and many of those who have gone abroad to work have not been able to get a job.
One student said: I know people who have gone to Australia to work. They are finding it very difficult to find any kind of job,” while the Graduate Recruiters Association described the current sentiment among graduates by saying, “Almost any job is better than nothing.”
Many of those who graduated last year now live with their parents and claim job search allowance. Some graduates are considering continuing their studies but are wary of racking up more debt.
“I’m going to continue the job search allowance for another month and keep looking for a job and then I’ll decide whether to enroll in the course,” said a graduate who currently lives with her parents.
Elspeth Farrar, Association of Graduate Careers Advisory Services added: “It’s been bad for those who graduated in 2008, it will be horrible for those who graduate this year, but it’s nothing compared to what 2010 graduates will face.”
