The euro area jobless rate fell unexpectedly to the lowest level since August 2012, yet remains elevated.
The unemployment rate came in at a double-digit 11.4 percent in December, slightly down from 11.5 percent in November. It was expected to remain unchanged at 11.5 percent in December.
This was the lowest rate reported in the euro area since August 2012. The number of unemployed decreased by 157,000 from November and 693,000 from December 2013.
The youth unemployment rate was at 23 percent versus 23.9 percent in the prior year.
In the EU28, the jobless rate slid to 9.9 percent in December from 10 percent in November. This was the first time the rate has fallen below 10 percent since October 2011.
A resumption in the downward trend in unemployment fuels hopes that businesses are feeling more inclined to take workers on as very low oil prices, a markedly weaker euro and increasingly accomodative monetary policy foster a more favorable growth environment, IHS Global Insight's Chief European economist Howard Archer said.
Germany's unemployment rate declined to a record low 6.5 percent in January, the federal labor agency reported Thursday. The German government expects the number of employed to reach a record 42.8 million this year.
In Spain, jobless claims dropped 64,405, which was the second biggest fall in December, labor ministry said early this month. In 2014, claims declined at the fastest pace since 1998. The registered unemployment fell sharply by 253,627 in 2014.
Italy's jobless rate fell to a 4-month low in December, Istat revealed today. The rate dropped to 12.9 percent from 13.3 percent in November.
On the other hand, the French unemployment hit a record high in December. The number of people out of work rose 0.2 percent or by 8,100 from prior month to 3,496,400 in December.
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