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Eurozone Unemployment Expected To Continue To Rise

ByBenzinga
AuthorBenzinga
Published 07/23/2013, 08:33 AM
Updated 05/14/2017, 06:45 AM

The euro traded steadily at $1.32 on Tuesday morning after a Group of 20 meeting at which eurozone finance ministers promised to put economic growth ahead of austerity moving forward.

The news was welcome in the struggling southern European nations where the populations have become disillusioned as they face rising unemployment figures. According to Reuters, the struggle is far from over as economists are expecting the jobless figures in both Spain and Greece to climb above 27 percent and will continue to plague the nations well into 2015.

Currently, the unemployment rate for the entire eurozone region is 12.2 percent, which is equivalent to more than 19.3 million people. Youth unemployment is also at an all time high which has earned young people ages 18-25 the nickname “the lost generation”.

Many have attributed the rising unemployment to strict austerity measures which were enacted as part of bailout programs forced on struggling eurozone members.

Without any stimulus measures, jobless rates have skyrocketed and the region has struggled to return to economic growth. Now, with a new, more accommodative stance, the eurozone is expected to start its come back over the next few years. Although European Central Bank President Mario Draghi claimed the region would begin to show signs of recovery by the end of this year, many economists don't see sickly countries like Portugal and Spain showing any improvement until 2014 at the earliest.

Ireland seems to be the only country which received a bailout that is making any progress. Despite falling into recession at the beginning of 2013, the nation has shown modest economic growth for the past two years.

BY Laura Brodbeck

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