Ireland has lowest jobless rate in the EU

Ireland now has the lowest unemployment rate in the European Union, at less than half the euro-zone average, according to figures published yesterday by the European Commission.

Eurostat, the EU's statistical office, said that Ireland replaced Luxembourg last November as the member-state with the lowest jobless rate. Ireland's unemployment rate fell to 4.3 per cent in November, compared to Luxembourg's 4.4 per cent and a euro-zone average of 8.9 per cent.

Unemployment in Ireland stood at 4.4 per cent in October and 4.6 per cent in November 2003.

Euro-zone unemployment was highest in Greece at 10.7 per cent, Spain at 10.5 per cent and Germany at 9.9 per cent. Outside the euro-zone, the highest levels were recorded in Poland at 18.4 per cent and Slovakia at 17.3 per cent.

Ireland's jobless rate among people under 25 years old was also less than half the EU average - at 8 per cent compared to an euro-zone average of 17.3 per cent.

The highest level of youth unemployment was in Poland, where it stands at 38.8 per cent.

Europe's unemployment rate is substantially higher than that of its global competitors, with joblessness at 5.4 per cent in the United States and at 4.5 per cent in Japan.

Eurostat said that retail sales in the euro-zone increased by only 0.4 per cent in November compared with the same month in 2003. Retail sales in Germany, the euro-zone's biggest economy, fell by 2.5 per cent compared to the previous month.

Yesterday's weak data on employment and retail sales has reinforced doubts about the strength of the euro-zone's economic recovery and fears that the euro's recent rise against the dollar is dampening growth.

The strong euro makes euro-zone exports less competitive at a time when domestic demand in the biggest economies, such as Germany, is especially weak.

Hopes that the European Central Bank (ECB) will respond to the surge in the euro by cutting interest rates have faded in recent months and the ECB is expected to leave rates unchanged at 2 per cent when its governing council meets in Frankfurt next week.

The Economic and Monetary Affairs Commissioner, Mr Joaquin Almunia, yesterday expressed confidence that the euro-zone's economic recovery would gain in strength this year. He expressed satisfaction at the slight weakening in recent days of the euro against the dollar.