Europe’s unemployment rate hits lowest level in recent history

You know that feeling you get when you unexpectedly find $10 in an old jacket pocket?

That’s probably how some European nations are feeling right now. The eurozone—a collection of EU countries that use the Euro as their primary currency—recently reported better-than-expected employment numbers.

Where in the world? The unemployment rate in the eurozone fell to 6.4% in November, a record low only seen one other time since the 2008 Great Recession, according to Eurostat. The biggest YOY drops in unemployment were in Greece (9.4%, down from 11.9%) and Spain (11.9%, down from 12.9%).

But it’s not all good news, economic experts told the Financial Times. Some companies in Europe held onto more workers than they needed last year, and productivity is low. “Looking ahead, surveys suggest that hiring intentions are coming down and some firms, predominantly in manufacturing, are looking to shed workers as the outlook for their sector remains bleak,” Melanie Debono, economist at Pantheon Macroeconomics consulting firm, said.

Satellite view. The unemployment rate in the eurozone is higher than in the US (3.7%). The International Labor Organization expects the global unemployment rate to rise slightly in 2024 (5.1% in 2023, to 5.2% this year), as productivity levels and technology skills shortages persist, reported EuroNews.

“The workforce challenges...pose a threat to both individual livelihoods and businesses and it is essential that we tackle them effectively and fast,” Gilbert Houngbo, director general of the ILO, said.

The eurozone may want to check a couple other coat pockets for a good 2024.