In the US and the UK, the unemployment rate is falling sharply, and it’s causing growing angst about when their central banks will be forced to consider a tightening labour market, and what that means for inflation.
Of course, there’s some debate about the significance of various factors in driving the unemployment rate lower (job creation vs. people leaving the labour force).
But check out the newly released chart of Eurozone unemployment.
The line to look at is the thin blue line. It’s just flatlined. Despite the main Eurozone crisis being long over, there’s been no improvement in months. It’s just not getting better. The EU 28 line includes non-Eurozone European countries like the UK, which as we noted is seeing a sharp drop in unemployment, and so that explains why that one is dropping.
But back to the Eurozone one. Unemployment is at staggering levels and it’s not improving.
Here’s a country-by-country breakdown of the unemployment rate.
Meanwhile, Eurozone inflation just hit its all-time lowest level. Europe is looking more and more like it’s in a “Japanese” deflation scenario every day.