Unemployment in the euro zone matched its lowest level on record in November, despite worries that the 20-nation bloc succumbed to a recession in the second half of last year, according to Bloomberg.
The jobless rate dropped to 6.4% from 6.5% in October, Eurostat said Tuesday, equivalent to almost 11 million people out of work in the region of more than 300 million.
The data underscore why the European Central Bank has no plans to start cutting interest rates any time soon. Even amid the mild downturn, employers are struggling find staff, pushing wages higher and creating upside risks for inflation.
A new labor hoarding indicator calculated by the European Commission and published Monday held steady in December — above its average since 2011 but well below its pandemic peak.
ECB policymakers don’t expect to lower borrowing costs before the middle of the year, later than investors are currently betting.
