Last week’s employment report and 7% unemployment rate in the USA had many people (including markets) cheering the news. But here’s something you might not know – while there’s been a seemingly okay recovery in the USA the labor crisis in Europe has actually gotten worse. Here’s the visual below as well as some interesting insights via SocGen:
- Unemployment reached its highest level in the eurozone with wide differentials between the different countries in the region.
- Despite some signs of stabilisation recently in southern eurozone countries, Spanish unemployment is well above 26% whereas the unemployment rate in Germany remains below 7%.
- Meanwhile, in the US, unemployment levels are improving rapidly and further continued improvements will play a decisive role in any potential tightening move by the Fed.