Euro-Zone Jobless Rate Stuck At High

The unemployment rate in the 17 countries that use the euro remained at over a 13-year high in December, data showed Tuesday, with a growing divergence apparent among the member states.

According to figures released by the European Union statistics agency Eurostat, the euro-zone's unemployment rate was 10.4% in December, unchanged from a revised November level and compared with 10% in December 2010. Eurostat had originally reported the November rate was 10.3%.

The data also show the number of unemployed persons in the single currency area rose to 16.469 million in December. That was again a new record high for the measure and compares with 16.449 million in November and 15.718 million a year earlier.

However, while the euro-area jobless rate has edged higher in recent months, the unemployment rate in Germany has been moving in the opposite direction. According to new data published earlier Tuesday by Germany's Labor Agency, the seasonally-adjusted unemployment rate fell to a fresh record low of 6.7% in January, down from 6.8% in December.

Eurostat's data showed that in Portugal, a country struggling with soaring debt costs, the unemployment rate rose to 13.6% in December from November's 13.2%.

Other economies also reported increases. French unemployment rose to 9.9% from 9.8%, and in Ireland and Italy, the unemployment rates rose to 14.5% and 8.9% respectively.

In Spain, while the jobless rate was unchanged from a month earlier, at 22.9% it was the highest rate reported by Eurostat.

The data highlight the growing divergence between those countries bearing the brunt of the ongoing debt crisis and safe-haven Germany. Unemployment has risen sharply across some euro-zone states in the past year, so much so that at Monday's summit of European Union heads of state, it was agreed that more needed to be done, particularly to help the growing number of unemployed youth.

In some countries youth unemployment is over 30%, and a draft EU statement outlined a pledge by the European Commission to use untapped funds from the European Social Fund to help the jobless and set up apprenticeship schemes.

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