Morning Forex Fundamental: EUR

Morning Forex Fundamental: EUR

'A further rise in unemployment in the short term, and only a slow decline from 2014 is likely to be an impediment to growth' - Marie Diron, an economist at Ernst and Young

The number of people holding down jobs in the Eurozone fell to its lowest point in nearly seven years in the final three months of 2012, according to the European Union's statistics agency Eurostat. The level of employment across the 17-nation currency bloc decreased by 0.3% in the fourth quarter of 2012, posting the fourth consecutive drop in the job creation rate. Meanwhile, in Spain, country with the highest level of unemployment, the number of employed people dropped 1.4%. Only Germany was able to boost the employment rate, highlighting the difference between the bloc's biggest economy and the rest of its members. As long as 19 million people in the bloc are out of work, or about 12% of population, the Eurozone economy is expected to recover until 2014.

'A further rise in unemployment in the short term, and only a slow decline from 2014 is likely to be an impediment to growth,' Marie Diron, an economist at Ernst and Young, said in a new report on the Eurozone's economy.

'Even with recovery, the number of people out of work across Europe will remain stubbornly high. By the end of 2017, we estimate the unemployment rate will remain above 11%,' she said