EU unemployment numbers due for May
Today, EuroStat will release the eurozone’s seasonally adjusted unemployment rate for June, which is widely expected to show an increase from last month’s rate of 7.3%.
April’s pandemic-induced unemployment jump was distributed unevenly across member states, with hard-hit nations such as Spain reporting rates of up to 14.8%.
Reports indicate that European labour markets have been partially shielded from the full force of the pandemic due to widespread reliance on temporary state-subsidised work and furlough programs. As many such schemes are set to expire by the end of the month, the short-term unemployment rate is set to rise while the commercial aviation and automobile sectors will likely bear the brunt of the job cuts. The European Central Bank predicts unemployment will reach an all-time high of 12.5% by next year.
With young people under 25 set to constitute the most-affected demographic, the European Commission (EC) will likely pass targeted initiatives to provide significant financing opportunities for younger workers. Expect member states to prioritise these investments and introduce additional measures to support youth employment in their respective economies.
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