The euro zone jobless rate hit a three-year high in March while higher energy costs kept producer price inflation above 2 per cent in the 12-member bloc, Eurostat data showed today.
The unemployment rate rose to a three-year high of 8.7 per cent in March from February's revised 8.6 per cent, with the number of people out of work in the euro zone rising to 12.2 million from 12.1 million in February.
Economists had been looking for the jobless rate to rise to 8.8 per cent from the 8.7 per cent rate previously reported for February. Even so, the current unemployment rate is the highest since February 2000, Eurostat said. Further increases in the euro zone jobless rate could be on the cards given recent soundings of firms.
Companies in the euro zone turned more gloomy about the economic outlook in April and reported a decline in their employment expectations, according to a European Commission survey released last week.
Sluggish economic activity and households' concern about layoffs is expected to bear down on consumer price inflation.