Posted by: abbyjoseph on Mar 06, 2013
By Michael Lombardi for Profit Confidential
The unemployment rate for the eurozone increased to 11.9% in January 2013—up from 11.8% in December of 2012. (Source: Eurostat, March 1, 2013.) Almost 19 million people are jobless in the eurozone.
The European Commissioner for employment and social affairs, Laszlo Andor, summed up the situation very clearly. He said, “Such unacceptably high levels of unemployment are a tragedy for Europe and they signal how serious of a crisis some eurozone countries are in.” (Source: Financial Times, March 1, 2013.)
Manufacturing in the eurozone is suffering, showing a continuous economic slowdown. The Purchasing Managers’ Index (PMI) showed a reading of 47.9 in February 2013—unchanged from January and deteriorating for the 19th consecutive month. (Source: Markit, March 1, 2013.) Any PMI reading below 50 represents contraction in the manufacturing sector.
Looking forward, as the economic slowdown deepens in the eurozone, I am focusing on stronger nations, such as Germany and France. They held their act together in the previous economic slowdown. But they are starting to deteriorate now, as the crisis in the region worsens.
France, the second-biggest economic hub in the eurozone, had a 10.6% unemployment rate in January.
In … Read More