European unemployment reaches highest level recorded
Monday, July 02, 2012 1:53 PM
Eurozone unemployment reached the highest level on record as a deepening economic slump and budget cuts prompted companies from Spain to Italy to reduce their workforces, Bloomberg reported. The jobless rate in the 17-nation euro area rose to 11.1 percent in May from 11 percent in April, the European Union's statistics office in Luxembourg said today. That's the highest since the data series started in 1995. Europe's companies are under pressure to lower costs to protect earnings as the worsening fiscal crisis erodes exports and consumer spending. Companies including Deutsche Lufthansa AG, PSA Peugeot Citroen and Spanish news agency Efe are seeking to eliminate jobs to cope with flagging demand. In May, nearly 17.6 million people were unemployed, an increase of 88,000 from April, Bloomberg said.