Wednesday, May 2, 2012

Italy's unemployment rate hits a 12-year-high in March

Students and the unemployed take part in a protest against austerity cuts and lack of jobs in Naples

The unemployment rate in Italy reached a 12-year-high in March as recession and spending cuts fed through to the population.

The rate in eurozone's third-biggest economy rose to 9.8%, from 9.6% the previous month, the national statistics agency Istat said.

Meanwhile, the jobless rate in Germany - the largest and strongest economy in Europe - unexpectedly also increased.

Unemployment data for all the eurozone nations will be released later.

Germany's jobless rate rose to 6.8% in March, official figures showed, having been expected to stay at the previous month's 6.7%.

Last week, Spain said that the number of jobseekers rose for the eighth month in a row in March to hit 4.75 million, or a record 23.6%.

Spain has the highest unemployment rate in the European Union and it is expected to rise further this year.

Spain and Italy are both in recession and have seen borrowing costs rise, raising the prospect that they may need help or even bailouts.

A debate is raging in Europe about whether politicians have prioritised austerity at the expense of economic growth, making recovery even harder for themselves.



Source & Image : BBC

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