Latest Eurostat report shows a slight dip in unemployment across the EU for November – but will this positive trend survive COVID-19’s current wave?

Unemployment in the eurozone and across the EU dipped slightly in November from the previous month, the bloc’s statistical office reported Friday.

Euro-area joblessness stood at 8.3 percent, compared to 8.4 percent in October, while the EU-wide number was 7.5 percent, down from 7.6 percent a month before, Eurostat said. But economists said the positive trend was largely owed to state support and does not account for the winter wave of coronavirus infections and accompanying lockdowns throughout Europe. “With the second lockdown wave in full play and a looming wave of insolvencies, unemployment looks set to increase in 2021,” analysts from the Dutch bank ING said in a note about the data.

The underlying numbers showed large disparities between member countries. Spain was the worst off, with 16.4 percent unemployment in November, while the Czech rate was lowest at 2.9 percent.

Unemployment dips in November 2020 but will positive trend survive COVID-19’s current wave?

Eurostat has just released its latest unemployment data, indicating a slight dip in unemployment in the euro area and across the EU in November 2020.

Eurozone unemployment stood at 8.3 percent, compared to 8.4 percent in October, while the EU-wide number was 7.5 percent, down from 7.6 percent a month before.

This positive trend may be largely tied to state support in various Member States aimed at minimising redundancies and may still be impacted negatively as 2021 kicks off, as COVID-19’s winter wave strikes across the continent with varying degrees of lockdowns stalling economic recovery.

The figures reported for each country show significant disparities between Member States. Spain had the highest rate, with 16.4 percent unemployment in November, while the Czech rate was lowest at 2.9 percent. Malta’s unemployment stood at 4.8 percent, below the Euro area average.