The traditional sign that an economic recession phase has ended is strong growth in employment as producers of goods and services taken on new staff to accommodate full order books. Whilst all agree that the recession waves that followed the global financial crisis are truly behind us, the return to fuller employment in many economies has yet to materialise.
Data just released from Eurostat shows that unemployment within the bloc slithered down by a mere 28000 in May; not enough to change the level from the 11.6% mark. Approximately 18.5 million Europeans remain without work in the bloc. The picture continues to be very patchy in terms of the unemployment level on a national basis with Austria (4.7%), Germany (5.1%) and Malta (5.7%) leading the way. In contrast, unemployment in Greece and Spain remain worryingly high at 26.8 and 25.1%, respectively. Youth unemployment (under 25) stands at an average of 23.3% across the bloc, but in Greece, Spain and Croatia, the figure is more than twice this.
Eurozone manufacturing growth eased in June with the Markit Purchasing Managers’ Index (PMI) slipping by 0.4 from the May reading to stand at 51.8 - any reading above 50 shows that the sector under study is growing, of course. Commenting on the figures, Markit’s, chief economist, Chris Williamson, noted "The PMI survey will raise concerns that the Eurozone recovery is losing momentum. The overall picture is a reminder of just how fragile the region's recovery is looking. The slowdown will put pressure on policymakers at the European Central Bank (ECB) to do more to prevent the recovery from stalling."