The jobless rate in the euro zone remained stuck at 9 per cent in May from April as the economic recovery failed to generate new jobs, data from the European Union statistics office showed today.
Eurostat estimated 12.7 million people remained jobless in May in the 12-nation bloc while 19.3 million were unemployed in the 25-nation EU.
The jobless rate in the EU eased to 9 per cent from 9.1 per cent in April and May 2003.
The data was in line with expectations as economists polled by Reuters had on average expected the euro zone unemployment rate to remain steady at 9 per cent.
In May 2003, the euro zone jobless rate was 8.9 per cent. Economists had expected the euro zone labour market to lag the economic recovery as firms continue to rebuild profit margins during the early phases of economic expansion.
The lack of new jobs will continue to keep household spending in check, but there are signs that the mood of consumers is starting to pick up.
A survey by the European Commission today showed a slight improvement in consumer confidence in June on the back of growing optimism over the future financial situation, the general future economic situation and future unemployment.
"Employment expectations in the EU showed a quite positive picture," the Commission said yesterday.