US embassy cable - 04BRUSSELS2365

UNCLAS SECTION 01 OF 02 BRUSSELS 002365 
 
SIPDIS 
 
DOL FOR BLS AND ILAB 
TREASURY FOR IMI 
STATE FOR DRL/IL 
 
E.O. 12958: N/A 
TAGS: ELAB, EUN, USEU BRUSSELS 
SUBJECT:  EU-25 UNEMPLOYMENT RATE AT 9.1 PERCENT 
 
 
1.  SUMMARY.  The aggregate unemployment rate for 
the EU-25 published by the EU Commission's 
Statistical Office stood at 9.1 percent for April 
2004, unchanged from the previous month.  The 
unemployment rate for the euro zone (the twelve EU 
countries participating in the euro) was also stable 
at 8.8 percent in April 2004.  Without the 10 new 
members, the EU-15 unemployment rate was 8.1 
percent.  The overall impact of the 10 new members 
on the EU's unemployment rate has thus been to 
increase it by 1.0 percentage point - not exactly 
the huge and dramatic increase that conventional 
wisdom among some in the EU-15 had feared.  But the 
rate for the enlarged EU concealed wide differences 
in the rates of individual Member States ranging 
from 4.2 percent in Luxembourg to 18.9 percent in 
Poland.  END SUMMARY. 
 
2.  Following enlargement, the EU Commission 
Statistical Office (EUROSTAT) is now publishing 
compiled monthly unemployment data for the EU-25. 
With seasonal adjustment and compensation for 
differences in national statistical methods, the EU- 
25 rate stood at 9.1 percent in April 2004, 
unchanged in comparison to both March 2004 and April 
2003.  The unemployment rate for the euro zone stood 
at 9.0 percent in April 2004, also unchanged in 
comparison with March 2004.  The euro-zone rate was 
9.1 percent in April 2003. 
 
3.  The lowest rates among the EU-25 (April 2004 
rates unless otherwise indicated) were recorded in 
Luxembourg (4.2 percent), Cyprus (4.4 percent), 
Ireland and Austria (both 4.5 percent), the 
Netherlands (4.7 percent, March 2004) and the UK 
(4.7 percent in February 2004).  Poland (18.9 
percent), Slovakia (16.6 percent), Lithuania (11.5 
percent) and Spain (11.2 percent) showed the highest 
rates among the EU-25. 
 
4.  EUROSTAT noted that fourteen Member States 
showed an increase in their unemployment rate over 
the past twelve months, ten a decrease and one 
recorded no change.  The most significant increases 
in unemployment rates (April 2003-to-April 2004 
comparison unless otherwise noted) were recorded in 
the Netherlands (from 3.5 percent in March 2003 to 
4.7 percent in March 2004), Luxembourg (from 3.5 
percent to 4.2 percent), Sweden (from 5.4 percent to 
6.3 percent), and Malta (from 7.9 percent to 9.0 
percent).  By contrast, the largest decreases 
occurred in Lithuania (from 13.2 percent to 11.5 
percent), Estonia (from 10.4 percent to 9.2 
percent), and the UK (from 5.1 percent in February 
2003 to 4.7 percent in February 2004). 
 
5.  Based on EUROSTAT estimates, male unemployment 
reached 8.3 percent in April 2004 for the EU-25 and 
8.0 percent for the euro zone, respectively 
unchanged and up from 7.8 percent when compared to 
April 2003.    The female rate for the EU-25 was 
stable at 10.0 percent over the same period (up from 
10.2 percent to 10.3 percent for the euro zone). 
 
6.  Unemployment rates among young people under 25 
in April 2004 ranged from 7.3 percent in Austria to 
39.6 percent in Poland.  The rate for this age group 
in April 2004 was estimated at 18.1 percent for the 
EU-25 and 17.3 percent for the euro zone, compared 
to 18.4 percent (thus down 0.3 percentage point) and 
17.1 percent (up 0.2 percentage point) respectively 
in April 2003. 
 
7.  EUROSTAT estimated that 19.3 million were 
unemployed in the EU-25 in April 2004 (12.7 million 
in the euro zone).  Following is the breakdown of 
unemployment rates in ascending order for the 
individual EU Member States: 
 
(Seasonally-adjusted) 
(April 2004 unless otherwise indicated) 
 
Luxembourg          4.2 
Cyprus              4.4 
Ireland             4.5 
Austria             4.5 
Netherlands         4.7  (March 2004) 
UK                  4.7  (February 2004) 
Denmark             5.9  (March 2004) 
Hungary             5.9 
Sweden              6.3 
Slovenia            6.4 
Portugal            6.8 
Belgium             8.5 
Czech Republic      8.5 
Italy               8.5  (January 2004) 
Malta               9.0 
Finland             9.1 
Estonia             9.2 
Greece              9.3  (December 2003) 
France              9.4 
Denmark             9.8 
Latvia             10.7 
Spain              11.2 
Lithuania          11.5 
Slovakia           16.6 
Poland             18.9 
 
EU-15               8.1 
EU-25               9.1 
 
8.  The monthly rates and numbers of unemployed are 
estimated and based on data from the annual EU labor 
force survey.  The estimated rates may differ from 
national unemployment rates due to differences in 
methods and definitions of unemployment.  Unemployed 
people according to ILO criteria are those aged 15 
and over who: 
 
--   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. 
 
SCHNABEL