The Eurozone unemployment in increase to its highest level 11.7% in October as per figures published by Eurostat. While the Eurozone’s unemployment rate has been increasing since June 2011, the unemployment in the U.S. has fallen to below 8%.
About 18.7 million people were unemployed across the Eurozone, up 173,000 from the previous month. Spain and Greece are most affected with over 25%, with 60% of jobless youth; such numbers can have a negative impact in the long run. Non-euro countries, like Britain and Poland, reported unemployment rate of 10.7% in October and a 25.9 million jobless workers. Continue reading
Tony Blair, the former prime minister, warned regarding Britain’s future in the European Union, that the country will face a risk if it edged toward leaving its regional alliance while power shifts to emerging economies. Speaking in London, Tony Blair argued about his country’s place in the bloc saying that the European Union was important because it helped Britain leverage its influence within a changed geopolitical landscape. Britons have not been enthusiastic about European integration but, lately, talks over Britain’s relationship with the European Union have geared up. Tony Blair was questioned by critics, telling his reliability at home had been dented by his interest in the Iraq attack, and because he had been active for euro membership, which has gone through a debt crisis.
It has been three years since the beginning of the most intense phase of the financial crisis in the late summer and fall of 2008, and more than two years since the economic recovery began in June 2009.
There have been some positive developments: The functioning of financial markets and the banking system in the United States has improved significantly. Manufacturing production in the United States has risen nearly 15 percent since its trough, driven substantially by growth in exports; indeed, the U.S. trade deficit has been notably lower recently than it was before the crisis, reflecting in part the improved competitiveness of U.S. goods and services. Business investment in equipment and software has continued to expand, and productivity gains in some industries have been impressive.
Nevertheless, it is clear that, overall, the recovery from the crisis has been much less robust than we had hoped. Recent revisions of government economic data show the recession as having been even deeper, and the recovery weaker, than previously estimated; indeed, by the second quarter of this year–the latest quarter for which official estimates are available–aggregate output in the United States still had not returned to the level that it had attained before the crisis. Slow economic growth has in turn led to slow rates of increase in jobs and household incomes. Continue reading