The euro area unemployment rate declined in July as economies reopened from the second wave, figures published by Eurostat showed on Wednesday.
The unemployment rate fell to 7.6 percent in July, as expected, from 7.8 percent in June. In the same period last year, the jobless rate was 8.4 percent.
The number of people out of work decreased 350,000 in July from June. On a yearly basis, unemployment fell by 1.336 million.
The unemployment rate among youth aged below 25 fell to 16.5 percent in July from 17.2 percent in June. Compared with June, youth unemployment decreased by 140,000 in July.
The EU unemployment rate was 6.9 percent in July, down from 7.1 percent in June and from 7.6 percent in July 2020.
“Given the quick declines in unemployment of late, we do expect any unemployment increases after furlough schemes end to be moderate, bar any large economic setbacks, of course,” Bert Colijn, an ING economist, said.
The economist said the decline in unemployment rate adds to medium-term inflation pressures, which will no doubt fuel further hawkish concerns about European Central Bank’s policy at next week’s meeting.