Unemployment in the 17-member eurozone edged up by 16,000 in May, data released Friday showed, as signs emerged that the region's economy has slowed since the start of the year.
The May increase in unemployment pushed the numbers out of work up to 15,510 million, the European Union's statistics office Eurostat said. However, the jobless rate remained unchanged at a near two-year low of 9.9 per cent. This was in line with analysts' forecasts.
The release of the latest jobs data coincided with the publication of a key report showing a further weakening of sentiment in the eurozone's manufacturing sector during June.
The London-based research group Markit Economics said its purchasing managers' index (PMI) for the currency bloc dropped to 52 this month from 54.6 in May. A reading of 50 or more indicates growth.
But the pickup in the numbers out of work and the weaker eurozone PMI is unlikely to deter the European Central Bank from its plans to deliver a rate hike at its meeting next Thursday.
ECB chief Jean-Claude Trichet told the European Parliament's committee on economic and monetary affairs that the ECB was in “a state of strong vigilance.” This is ECB code signalling that a rate hike is likely at its next meeting.
At 20.9 per cent, Spain once again recorded the region's highest unemployment rate, Eurostat said. The nation's jobless rate crept up from 20.7 per cent in April.
Spain has been at the centre of the eurozone debt crisis as it has battled to slash its high deficit and knock its state finances into shape.
Friday's jobless figures also once again underlined the eurozone's economic divergence.
The jobless rate remained stuck at double-digit levels in Ireland and Portugal, which have also been engulfed by the debt crisis. While Ireland's unemployment rate came in unchanged at 14
per cent in May, the jobless rate in Portugal stood at 12.4 per cent.
There was no figure provided for Greece, where the government this week managed to secure parliamentary backing for a tough austerity package aimed at cutting the nation's high debt-and-deficit levels. In March, Greek unemployment stood at 15
per cent.
Germany and France, which have helped to spearhead growth in the eurozone, posted falls in their jobless rate.
While the unemployment rate in Germany nudged down to 6 per cent in May from 6.1 per cent in April, France's jobless rate slipped to 9.5 per cent.
Economists believe eurozone growth slowed during the current quarter after a strong start to the year.
This follows the moves to wind back government spending across the eurozone as well as signs that global economic growth has lost momentum.
Eurostat said the jobless queues in the 27-member EU contracted by a modest 5,000 in May. This brought the numbers out of work down to 22.378. The unemployment rate remained unchanged at 9.3 per cent. - Sapa-dpa