European unemployment latest

Jodie Humphries

Data released from Eurostart - the European Union's official statistics agency, has shown that in September, Latvia's jobless rate became the highest of European unemployment, at 19.7 percent.

Eurostat said 22.12 million people in the EU are now out of work. Unemployment in the Eurozone rose to a ten-year high of 9.7 percent in September while inflation in the 16-nation area fell for the fifth consecutive month in October. In the past two years, 15 million people had lost their jobs.

Latvia has nudged Spain from the top spot of highest levels of European unemployment - it is now in second place with 19.3 percent. The other Baltic states follow Spain, with an unemployment rate of 13.8 percent in Lithuania and 13.3 percent in Estonia.

Latvia also has the distinction of having the largest increase in the jobless rate - up from 8.1 percent a year ago, an increase of 11.6 percent. Latvia is followed by Estonia, which saw its unemployment rate increase from 4.1 percent over the past year.

The highest level of joblessness was 28.1 percent in Rezekne region, while the lowest was in Tukums at 9 percent, the statistics agency reported.

Average unemployment

The average unemployment rate in the EU now stands at 9.7 percent - 0.1 percent lower than in the United States. The bloc's top performer is the Netherlands, with a jobless rate of 3.6 percent, followed by Austria with 4.8 percent, The Baltic Times reports.

The market

According to The Wall Street Journal the market is set to stay tough, ultimately having a knock on effect on unemployment levels.

The unexpected fall in German retail sales in September, the second straight monthly decline, highlights the fragility of the economic recovery and shows how tough the market will remain for Europe's retailers.

A combination of higher unemployment, rising taxes and government spending cuts will mean Europe's retail trading environment will remain difficult for at least another year, according to fund managers and analysts.

"There's no doubt in my mind that at least the next 12 months will continue to remain very tough pretty much everywhere, but quite how tough it's going to be is going to vary depending on the market," said Jason Gordon, retail director at Ernst & Young.

The economic downturn hit retailers hard, particularly those selling big ticket items like electronic goods and furniture, and smaller players with limited access to fresh credit to help them survive. A large number of European retailers have gone bankrupt as a result, with British liquor retailer First Quench Retailing the latest to go into administration Thursday.

The UK

Large retailers in the UK - which remains mired in recession - including Marks & Spencer Group PLC, John Lewis Partnership PLC, Next PLC and Debenhams PLC have all warned that trading conditions will remain difficult well into 2010 due to rising unemployment and widely expected tax hikes.

UK unemployment rose to 2.47 million in the three months to August - the highest level in 14 years - and is forecast to rise to 3 million next year. On 1 January the value added tax will revert to 17.5 percent from 15 percent, with fears it could rise further as the government seeks to cut its massive debt pile.

Malta

In the European Union, the country with the lowest unemployment rate, is Malta, The Malta Independent stated.

The prime minister reserved praise for Finance Minister Tonio Fenech for his tireless efforts in meeting, consulting and liaising with directors and owners of factories and businesses, who have had to battle hard to make ends meet in such turbulent circumstances.

"In spite of the economic crisis, the government has taken drastic measures to safeguard employment. Furthermore, we have handed out subsidies, amounting to millions of euro, to those who have left Malta Shipyards, so that despite their loss, they have a short term financial security to fall back on."

He said this shows that the Nationalist government has always placed workers at the forefront of its priorities.

Predictions

If predictions are correct, we are still a long way off seeing European unemployment improving. With the tax levels increasing back to 17.5 percent after Christmas in the UK, it could have more of a knock on effect on shops as people tighten those purse strings once again once they've had the added expense of Christmas.