June 2006 Euro area unemployment down to 7.8%

STAT/06/103

1 August 2006

June 2006 Euro area unemployment down to 7.8% EU25 down to 8.1%

Euro area1 seasonally-adjusted unemployment2 stood at 7.8% in June 2006, compared to 7.9% in May3. It was 8.6% in June 2005. The EU254 unemployment rate was 8.1% in June 2006, compared to 8.2% in May3. It was 8.8% in June 2005.

In June 2006, the lowest rates were registered in the Netherlands (3.8%), Denmark (3.9%), Ireland (4.4%), and Luxembourg (4.7%). Unemployment rates were highest in Poland (16.0%), Slovakia (15.1%), Greece (9.6% in the fourth quarter 2005), France (8.7%), and Malta (8.5%).

These figures come from Eurostat, the Statistical Office of the European Communities.

Amongst the Member States, seventeen recorded a fall in their unemployment rate over a year and seven reported an increase. The largest relative falls were observed in Estonia (8.0% to 4.9%), Lithuania (8.4% to 5.4%), Denmark (5.1% to 3.9%), and the Netherlands (4.8% to 3.8%). The highest relative increases were registered in Malta (7.2% to 8.5%), the United Kingdom (4.6% in April 2005 to 5.3% in April 2006), Slovenia (6.2% to 6.5%), and Cyprus (5.4% to 5.6%).

The unemployment rate for males fell from 7.5% to 6.8% in the euro area between June 2005 and June 2006 and from 7.9% to 7.3% in the EU25. The female unemployment rate declined from 10.1% to 9.1% in the euro area and from 9.8% to 9.1% in the EU25.

In June 2006, the unemployment rate for under-25s was 16.5% in the euro area and 17.4% in the EU25. In June 2005 it was 17.4% and 18.4% respectively. The lowest rates for under-25s were observed in the Netherlands (5.8%), Denmark (7.4%), Ireland (8.1%) and Estonia (9.2% in May 2006), the highest in Poland (32.3%), Slovakia (29.7%) and Greece (26.4% in fourth quarter 2005).

Eurostat estimates that, in June 2006, 11.5 million men and women were unemployed in the euro area and 17.7 million in the EU25. These are seasonally-adjusted figures in line with ILO criteria.

In June 2006, the US unemployment rate was 4.6% and the Japanese rate was 4.2%.

Unemployment (%) in June 2006 - in ascending order

Eurostat compiles "harmonised" unemployment rates for Member States. These unemployment rates are based on definitions recommended by the International Labour Organisation (ILO). "Harmonised" means that the national micro data concerning the individuals and households are treated by Eurostat in the same fashion throughout the EU so as to allow comparability between the Member States.

The Eurostat definition of unemployed people are those aged 15 to 74 and who, following the International Labour Organisation (ILO) definition:

- are without work;

- are available to start work within the next two weeks;

- and have actively sought employment at some time during the previous four weeks.

The unemployment rate is the number of people unemployed as a percentage of the labour force. The labour force is the total number of people employed and unemployed.

The numbers of unemployed and the monthly unemployment rate are estimates based on results of the European Union Labour Force Survey which is a household survey carried out in all countries on the basis of agreed definitions. These results are interpolated/ extrapolated to monthly data using national survey data and national monthly series on registered unemployment. The most recent figures are therefore provisional; first results from the Labour Force Survey are available 90 days after the end of the reference period for most Member States.

Monthly unemployment and employment series are calculated first at the level of four categories for each Member State (males and females 15-24 years, males and females 25-74 years). These series are then seasonally adjusted and all the national and European aggregates are calculated. Before the aggregation, missing national data are estimated using the most recent trends of the series.

Registered unemployed data are national administrative data compiled on a purely national basis and purposes. There are no European-wide rules on definition and coverage. Therefore the ensuing unemployment rates cannot be compared from one country to another. National legislation on the definition of unemployment and therefore its calculation can change in individual states. The conditions to receive unemployment benefits and assistance vary from one country to another. This affects the willingness of people to register themselves and the published unemployment rates.

Member States may also publish other rates than register based unemployment rates, for example based on national Labour Force or corresponding surveys. Although still internationally comparable, these rates may vary to a minor extent from those published by Eurostat due to different methodological choices.

Current deviations from definition of unemployment in the EU Labour Force Survey

Spain, United Kingdom: Unemployment is restricted to persons aged 16-74. In Spain the legal age limit for working is 16.

Netherlands: Persons without a job, who are available for work and looking for a job are only included in unemployment if they express that they would like to work.

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SEASONALLY ADJUSTED UNEMPLOYMENT RATES (%)

TOTAL MALES AND FEMALES

: Data not available Source: Eurostat

SEASONALLY ADJUSTED UNEMPLOYMENT RATES (%) MALES

FEMALES

: Data not available Source: Eurostat

SEASONALLY ADJUSTED UNEMPLOYMENT RATES (%) UNDER 25 YEARS8

25 YEARS AND OVER

: Data not available Source: Eurostat