US embassy cable - 05BRUSSELS3234

UNCLAS SECTION 01 OF 02 BRUSSELS 003234 
 
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 UNEMPLOYMENT AT 8.6 PERCENT 
 
1.  SUMMARY.  The aggregate unemployment rate for 
the EU-25 recorded a marginal decrease to 8.6 
percent in July 2005, 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 at the same rate.  END SUMMARY. 
 
2.  With seasonal adjustment and compensation for 
differences in national statistical methods, the EU- 
25 unemployment rate stood at 8.6 percent in July 
2005, down from 8.7 percent in June and from 9.0 
percent in July 2004.  The unemployment rate for the 
euro zone also stood at 8.6 percent in July 2005, 
down from 8.7 percent in June 2005 and from 8.9 
percent in July 2004. 
 
3.  The lowest rates among the EU-25 (July 2005 
rates unless otherwise indicated) were recorded in 
Ireland (4.3 percent), the UK (4.7 percent, May 
2005), Denmark (4.8 percent, June 2005), the 
Netherlands (4.8 percent) and Austria (5.1 percent). 
Poland (17.6 percent), Slovakia (15.2 percent), 
Greece (9.9 percent in March 2005), France (9.7 
percent), Spain (9.4 percent) and Germany (9.3 
percent) showed the highest rates among the EU-25. 
 
4.  EUROSTAT noted that fifteen countries among the 
EU-25 recorded a decrease in their unemployment rate 
over the past twelve months, seven increased and 
three showed stabilization.  The most significant 
decreases (July-to-July comparison, unless otherwise 
indicated) occurred in Lithuania (from 11.1 percent 
to 7.8 percent), Estonia (from 9.2 percent to 7.6 
percent), Slovakia (from 18.1 percent to 15.2 
percent), Spain (from 10.9 percent to 9.4 percent) 
and Denmark (from 5.4 percent in June 2004 to 4.8 
percent in June 2005).  By contrast, the largest 
increases (July-to-July change) occurred in 
Luxembourg (from 4.8 percent to 5.4 percent), 
Hungary (from 5.8 percent to 6.4 percent), the 
Netherlands (from 4.5 percent to 4.8 percent) and 
Cyprus (from 5.0 percent to 5.3 percent). 
 
5.  Based on EUROSTAT estimates, male unemployment 
reached 7.8 percent in July 2005 for the EU-25 and 
7.4 percent for the euro zone, respectively down by 
0.2 percentage point and 0.1 percentage point when 
compared to July 2004.  The female rate over the 
same period decreased from 10.2 percent to 9.7 
percent for the EU-25 and from 10.6 percent to 10.1 
percent for the euro zone. 
 
6.  Unemployment rates among young people under 25 
(July 2005 estimates, unless otherwise noted) ranged 
from 7.0 percent in Denmark (June 2005), 7.9 percent 
in Ireland and 8.1 percent in the Netherlands to 
35.3 percent in Poland and 25.2 percent in Slovakia. 
The rate for this age group in July 2005 was 
estimated at 17.7 percent for the EU-25 and 17.0 
percent for the euro zone, compared to 18.5 percent 
(minus 0.8 percentage point) and 17.7 percent (minus 
0.7 percentage point) respectively in July 2004. 
 
7.  EUROSTAT estimated that 18.7 million were 
unemployed in the EU-25 in July 2005 (12.5 million 
in the euro zone).  Following is the breakdown of 
unemployment rates in ascending order for the 
individual EU Member States: 
 
(Seasonally-adjusted) 
(July 2005 unless otherwise indicated) 
 
Ireland 4.3 
UK4.7  (May 2005) 
Denmark 4.8  (June 2005) 
Netherlands4.8 
Austria5.1 
Cyprus5.3 
Luxembourg5.4 
Slovenia5.9 
Sweden6.3  (March 2005) 
Hungary6.4 
Malta6.5 
Portugal7.2 
Estonia7.6 
Czech Republic7.7 
Italy7.8  (March 2005) 
Lithuania           7.8 
Belgium8.0 
Finland8.3 
Latvia              8.8 
Germany     9.3  (provisional) 
Spain          9.4 
France 9.7 
Greece     9.9  (March 2005) 
Slovakia    15.2 
Poland             17.8 
 
Euro zone8.6 
EU-258.6 
 
      15.2 
Poland             17.8 
Euro zone   8.6 
EU-25   8.6 
 
8.  EUROSTAT separately published the following data 
for EU candidate countries: 
 
Bulgaria    10.8  (June 2005) 
Romania     4.8  (April 2005) 
CroatiaN/A 
Turkey     N/A 
 
9.  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 
 
 
 
McKINLEY