Unemployment in the 12-nation euro zone rose to 8.9 per cent of the workforce in February from 8.8 per cent in January, defying expectations of a stabilisation and adding to concern about economic growth prospects.

Economists had expected the unemployment rate to remain flat. The jobless rate has been stuck around this level since March, 2003.

Statistics office Eurostat said yesterday that the unemployment rate for the 25-member European Union was unchanged at 8.9 per cent in February, in contrast to a 5.4 per cent rate in the United States and 4.6 per cent in Japan.

In the euro zone, the highest unemployment rate in February was 10.3 per cent in Spain, followed by 9.8 per cent in France and 9.7 per cent in Germany - the area's two biggest economies.

Poland had the highest jobless rate in the whole of the EU at 18.1 per cent, followed by Slovakia with 16.2 per cent.

Eurostat estimated that in February 12.8 million people were without jobs in the euro zone and 19.1 million remained unemployed in the European Union.- (Reuters)