(Image Source:  Wikimedia Commons )

 

BY EMILY ALLEN

ANCHOR DAVID EARL
 

More trouble in the Eurozone. Unemployment in the region is at a record high – 10.9 percent in March according to Eurostat, the European Union's statistics office.   Here is Fox News and the BBC.

“We’ve heard a lot and talked a lot about Greece and its role in Europe’s financial crisis, but there is trouble for a much bigger economy on that continent now.  Spain’s unemployment rate? Get this.  Pretty close to 25 percent.”

“17.4 million are now looking for work.  Italy’s unemployment reached a 12 year high, up to 9.8 percent. And in a surprise move, the jobless rate in Germany rose 6.8 percent in March.”

Bloomberg Businessweek says it’s especially surprising to see Germany in a slump and that this trend could be far-reaching.

“If Germany weakens, it would have two conflicting effects—hurting the rest of Europe by decreasing Germany’s demand for their products, but possibly helping the rest of Europe by making Germany more sympathetic to the need for stimulus to restore growth.”

But an analyst at Barclays Capital told the New York Times Germany’s job market still looks bright.  But the Times writer says the staggering difference in unemployment rates among the 17 countries in the EU is worrisome.  And there is a gap growing between northern and southern Eurozone countries.

There is another indicator in the report showing economic disparity – a growing number of young people are searching for jobs.   The Globe and Mail reports.

“In Germany, Austria and the Netherlands, for example, youth jobless levels are below 10 per cent. But in countries such as Greece and Spain, they're running at more than half the work force.”

A writer for MSNBC says it looks like Europe’s two-year austerity plan isn’t working and there isn’t a back-up plan.  

“Those efforts initially focused on Greece, which ultimately defaulted on a portion of its debt.
Now, other countries appear to be entering the downward spiral, as spending cuts force layoffs and undermine consumer and business confidence, driving local economies deeper into recession."