Eurozone unemployment rate declined to the lowest in more than seven years in October, reflecting strong momentum in the labor market despite weak economic growth.
The jobless rate dropped to 9.8 percent in October from a revised 9.9 percent in September, Eurostat reported Thursday. This was the lowest since July 2009.
Economists had expected the rate to remain unchanged at September's initially estimated 10 percent.
The number of unemployed decreased by 178,000 from the previous month to 15.908 million. Compared to a year ago, unemployment fell by 1.124 million.
However, the youth unemployment that applies to those under 25 years of age held steady at 20.7 percent in October.
Final Purchasing Managers' survey results for November also showed on Thursday that more jobs were created in the manufacturing sector with the pace of growth only marginally below October's near five-and-a-half year record.
The manufacturing Purchasing Mangers' Index rose to 53.7 from 53.5 in October. A reading above 50 suggests expansion in activity. The sector expanded at the fastest pace in 34 months in November.
Improving labor markets are key if Eurozone consumers are to make a solid contribution to growth over the coming months, especially as gradually rising inflation is likely to eat into purchasing power over the coming months, IHS Global Insight economist Howard Archer said.
However, Capital Economics economists said the Eurozone unemployment data showed that the labor market recovery has regained some pace. But the rate of unemployment is still high and recent developments are consistent with pretty slow wage growth.
The EU28 unemployment rate came in at 8.3 percent, the lowest since February 2009, versus 8.4 percent in September.
Among the member states, the lowest unemployment rates were registered in the Czech Republic and Germany, while the highest in Greece.
According to Germany's Federal Labor Agency, the unemployment rate declined to 6 percent in November, the lowest since the German reunification in 1990.
Elsewhere, data from the statistical office Istat showed that the Italy's unemployment rate slid to 11.6 percent in October from 11.7 percent in September.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.