The unemployment rate in the eurozone remained low

Ai Hui Cha, August 31: The unemployment rate in the Eurozone remained stable at a relatively low level in July, indicating that the labor market with continuous wage growth has hardly loosened, and inflation rates remain high. According to data released by the European Bureau of Statistics, the unemployment rate in July was 6.4%, maintaining its historical low set in May. However, according to Eurostat, the number of unemployed people in the eurozone increased by approximately 73000 in July. The youth unemployment rate remained stable at 13.8%, with a slight increase in absolute figures compared to June. The unemployment rate in the euro area has been declining steadily since reaching a high point of 8.6% in August 2020, when the economy and labor market were hit by the COVID-19 epidemic. The data from July indicates that despite economic weakness, the labor market remains relatively scarce, and salaries are likely to continue to grow rapidly. In a tight labor market, wage growth is a driving factor for high inflation, which may force the European Central Bank to extend its interest rate hike cycle.