EZ Aug Unemployment Edges Higher

EZ AUG UNEMPLOYMENT RATE 8.1%; JUL 8.0%r

• The EZ jobless rate ticked up to 8.1% from an upwardly revised Jul reading of 8.0% (rev. up +0.1pp).
• This marks the fifth consecutive increase of the unemployment rate and the highest level since June 2018.
• Among the member states, Spain (16.2%), Italy (9.7%) and Lithuania (9.6%) recorded the highest rates, while Malta (4.1%), Germany (4.4%) and Slovenia (4.7%) posted the lowest rates.
• Youth unemployment (under 25s) increased to 18.1% in the Eurozone in Aug, up from 17.8% in Jul, showing the highest rate since Oct 2017.
• Eurostat noted that the Covid-19 crisis led to a sharp increase in claims for unemployment benefits across the EU and that a substantial amount of people stopped looking for work.
• Survey evidence suggests suggests further pressure on unemployment with the flash composite PMI reporting the seventh consecutive decline in Employment.