Euro unemployment ‘has grave social consequences’, EC warns
Eurozone to stay in recession for another year
Unemployment in Europe is “unacceptably high” and threatens “grave social consequences”, the European Commission has warned as it painted a gloomy picture of the eurozone’s troubled economy.
By Rachel Cooper
22 Feb 2013
Publishing its winter forecast on Friday, the commission predicted that joblessness in the eurozone will peak at 12.2pc, or more than 19m people, this year as the currency bloc continues to struggle.
Marco Butti, the EC’s director general for economic and financial affairs, described Europe’s labour market as a “serious concern”.
“Employment is forecast to shrink further for some quarters, and unemployment remains unacceptably high in the EU as whole and even more so in the Member States facing the largest adjustment needs,” he said.
“This has grave social consequences and will, if unemployment becomes structurally entrenched, also weigh on growth perspectives going forward.”
Slashing growth forecasts for the eurozone, the EC indicated it will remain mired in recession for a year longer than originally foreseen.