US embassy cable - 04BRUSSELS3688

UNCLAS SECTION 01 OF 02 BRUSSELS 003688 
 
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 DOWN TO 9.0 PERCENT 
 
 
1.  SUMMARY.  The aggregate unemployment rate for 
the EU-25 stood at 9.0 in July 2004, down 0.1 
percentage point from the previous month, according 
to data published by the EU Commission's Statistical 
Office (EUROSTAT) on September 1.  The unemployment 
rate for the euro zone (the twelve EU countries 
participating in the euro) was stable, also at 9.0 
percent in July 2004.  Without the 10 new members, 
the EU-15 unemployment rate was also stable at 8.1 
percent.  END SUMMARY. 
 
2.  With seasonal adjustment and compensation for 
differences in national statistical methods, the EU- 
25 rate stood at 9.0 percent in July 2004, down from 
9.1 percent in June 2004 and the four previous 
months as well as July 2003.  The unemployment rate 
for the euro zone also stood at 9.0 percent in July 
2004, unchanged in comparison with June 2004.  The 
euro-zone rate was 8.9 percent in July 2003. 
 
3.  The lowest rates among the EU-25 (July 2004 
rates unless otherwise indicated) were recorded in 
Austria (4.2 percent), Luxembourg (4.3 percent), 
Ireland, Cyprus (4.5 percent in both countries), and 
the UK (4.7 percent in May 2004).  Poland (18.8 
percent), Slovakia (15.9 percent), Lithuania (11.3 
percent) and Spain (11.0 percent) recorded the 
highest rates among the EU-25. 
 
4.  EUROSTAT noted that eleven Member States showed 
an increase in their unemployment rate over the past 
twelve months, eleven a decrease and three recorded 
no change.  The most significant increases in 
unemployment rates (July 2003-to-July 2004 
comparison unless otherwise noted) were recorded in 
the Netherlands (from 3.8 percent in June 2003 to 
4.8 percent in June 2004), Sweden (from 5.6 percent 
to 6.4 percent), Luxembourg (from 3.8 percent to 4.3 
percent), and the Czech Republic (from 7.9 percent 
to 8.8 percent).  By contrast, the largest decreases 
occurred in Estonia (from 10.3 percent to 8.8 
percent), Lithuania (from 12.6 percent to 11.3 
percent), and Slovakia (from 17.0 percent to 15.9 
percent). 
 
5.  Based on EUROSTAT estimates, male unemployment 
reached 8.3 percent in July 2004 for the EU-25 and 
8.0 percent for the euro zone, respectively 
unchanged and up from 7.9 percent when compared to 
July 2003.  The female rate was stable over the same 
period at 10.0 percent for the EU-25 and up from 
10.2 percent to 10.3 percent for the euro zone. 
 
6.  Unemployment rates among young people under 25 
in July 2004 ranged from 6.9 percent in Austria to 
39.1 percent in Poland.  The rate for this age group 
in July 2004 was estimated at 18.0 percent for the 
EU-25 and 17.4 percent for the euro zone, compared 
to 18.5 percent (down 0.5 percentage point) and 17.2 
percent (up 0.2 percentage point) respectively in 
July 2003. 
 
7.  EUROSTAT estimated that 19.3 million were 
unemployed in the EU-25 in July 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) 
(July 2004 unless otherwise indicated) 
 
Austria             4.2 
Luxembourg          4.3 
Ireland             4.5 
Cyprus              4.5 
UK                  4.7  (May 2004) 
Netherlands         4.8  (June 2004) 
Denmark             5.9 
Hungary             5.9 
Slovenia            6.2 
Portugal            6.4 
Sweden              6.4 
Italy               8.5  (January 2004) 
Belgium             8.6 
Malta               8.7 
Czech Republic      8.8 
Estonia             8.8 
Finland             9.0 
Greece              9.3  (December 2003) 
France              9.5 
Germany             9.9 
Latvia             10.6 
Spain              11.0 
Lithuania          11.3 
Slovakia           15.9 
Poland             18.8 
 
Euro zone           9.0 
EU-15               8.1 
EU-25               9.0 
 
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. 
 
MCKINLEY