Eurozone unemployment held steady for the third month in a row in June, despite a rise in unemployment in France and Germany, but analysts warned that that an increase is almost inevitable given widespread global gloom.
EU statistics agency Eurostat said the region's jobless rate stood at 8.3 per cent in June, steady since March, when it stood at 8.4 per cent and compared to 8.9 per cent a year ago.
Economists said a rise in French unemployment had tipped the balance of risks in favour of a slight increase in the Eurozone June data. They welcomed the figures but said a deterioration in the months ahead was still possible as global economic sentiment was still fragile.
The jobless rate for the 15-member European Union was also unchanged from May at 7.6 per cent and below the year ago figure of 8.2 per cent.
French unemployment rose to 8.8 per cent, the first increase in three years, while the German jobless rate unemployment rose to 8.9 per cent, the sixth consecutive monthly increase.
Some analysts said European companies have been slower to shed labour than firms in the US despite increasing global economic gloom. But others said that it was only a matter of time before the slowdown filters through into Europe.
"I was expecting a small rise (in the euro zone jobless rate) given that we have seen a quickresponse of the labour market to deteriorating economic conditions, especially in France and Germany," said Mr Jean-Francois Mercier, Euroland economist at SSSB/Citibank.
"But it's only a matter of time before we see a slight rise. It's unavoidable given all othereconomic indicators have been weak" he added.