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| Unemployment in Euro Zone Continues to Rise | Unemployment in Euro Zone Continues to Rise |
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| The euro zone jobless rate rose to a record 12.1 percent in March, a sharp reminder that unemployment remains among the region’s biggest problems. | The euro zone jobless rate rose to a record 12.1 percent in March, a sharp reminder that unemployment remains among the region’s biggest problems. |
| The unemployment rate in the 17-nation currency union ticked up by one-tenth of a percentage point from February, when the previous record was set, Eurostat, the statistical agency of the European Union, reported from Luxembourg. A year earlier, the rate was 11 percent. | The unemployment rate in the 17-nation currency union ticked up by one-tenth of a percentage point from February, when the previous record was set, Eurostat, the statistical agency of the European Union, reported from Luxembourg. A year earlier, the rate was 11 percent. |
| A separate report Tuesday from Eurostat showed that inflation dropped sharply, well below the European Central Bank’s target rate of 2 percent a year. The annualized rate of inflation for consumer prices was 1.2 percent in April 2013, down from March, when it was 1.7 percent. | A separate report Tuesday from Eurostat showed that inflation dropped sharply, well below the European Central Bank’s target rate of 2 percent a year. The annualized rate of inflation for consumer prices was 1.2 percent in April 2013, down from March, when it was 1.7 percent. |
| The reports, along with other recent data that suggested that the economy was healing more slowly than many had hoped, could prompt the European Central Bank to take action at its policy meeting on Thursday. The central bank could cut its key interest-rate target, already at a record low of 0.75 percent, by a quarter point, economists said, though the impact of such a move would probably be slight because banks remain less than eager to lend. | The reports, along with other recent data that suggested that the economy was healing more slowly than many had hoped, could prompt the European Central Bank to take action at its policy meeting on Thursday. The central bank could cut its key interest-rate target, already at a record low of 0.75 percent, by a quarter point, economists said, though the impact of such a move would probably be slight because banks remain less than eager to lend. |
| “Stabilizing the peripheral euro zone countries will take at least until the end of 2013,” said Ralph Solveen, an economist with Commerzbank in Frankfurt. As a result, he said unemployment would probably keep rising “until next spring.” | “Stabilizing the peripheral euro zone countries will take at least until the end of 2013,” said Ralph Solveen, an economist with Commerzbank in Frankfurt. As a result, he said unemployment would probably keep rising “until next spring.” |
| For the 27-nation European Union, the jobless rate was unchanged in March, at 10.9 percent. Eurostat estimated that 26.5 million men and women were unemployed in Europe, including 5.7 million young people. | For the 27-nation European Union, the jobless rate was unchanged in March, at 10.9 percent. Eurostat estimated that 26.5 million men and women were unemployed in Europe, including 5.7 million young people. |
| Jobless figures for both the euro zone and the European Union are the highest Eurostat has reported since it began keeping the data in 1995, in the days before the euro. In comparison, the unemployment rate in the United States was 7.6 percent in March. | Jobless figures for both the euro zone and the European Union are the highest Eurostat has reported since it began keeping the data in 1995, in the days before the euro. In comparison, the unemployment rate in the United States was 7.6 percent in March. |
| The European economy remains trapped in a torpor with little relief in sight. Governments have tightened public finances to meet deficit targets, and companies remain reticent about hiring. The euro zone’s gross domestic product is widely expected to decline for a second consecutive year in 2013. | |
| Manufacturers are largely dependent on demand from outside Europe for growth. Carmakers, which employ about two million people in Europe, anticipate that sales in the European Union will this year fall back to levels last seen in the early 1990s. | Manufacturers are largely dependent on demand from outside Europe for growth. Carmakers, which employ about two million people in Europe, anticipate that sales in the European Union will this year fall back to levels last seen in the early 1990s. |
| A decline in energy prices helped push the inflation rate lower, but Jennifer McKeown, an economist in London with Capital Economics, said that the jobless problem was probably itself part of the reason for the downward pressure on prices. | A decline in energy prices helped push the inflation rate lower, but Jennifer McKeown, an economist in London with Capital Economics, said that the jobless problem was probably itself part of the reason for the downward pressure on prices. |
| She said in a note that it would be “a disappointment” if the central bank failed to ease rates and “announce further unconventional policies to boost bank lending.” | She said in a note that it would be “a disappointment” if the central bank failed to ease rates and “announce further unconventional policies to boost bank lending.” |
| Two nations are staggering under depression-level jobless rates: Greece, where the European sovereign debt crisis began, had a rate of 27.2 percent in January, the latest month for which data were available; and Spain, which had unemployment of 26.7 percent in March. | |
| Portugal was next at 17.5 percent. Germany, which has the largest economy in the European Union, was at 5.4 percent, with only Austria, at 4.7 percent, lower. Britain’s rate was 7.8 percent, while France’s was 11 percent. | Portugal was next at 17.5 percent. Germany, which has the largest economy in the European Union, was at 5.4 percent, with only Austria, at 4.7 percent, lower. Britain’s rate was 7.8 percent, while France’s was 11 percent. |