The unemployment rate in the Eurozone jumped in spring last year, due to the lockdowns, although the jobs market performed better than elsewhere, increasing to 8.6%. It started to decline in September, however, and the employment report for January showed another decline. But the retail sales also declined that month, which indicates that the Q1 GDP will probably be negative as well, so it’s another recession for the Eurozone.
Eurozone January Unemployment Rate
- January unemployment rate 8.1% vs 8.3% expected
- December rate was 8.3%; revised to 8.1%
The jobless rate in the euro area dipped in January, despite tighter virus restrictions still being in place, as the furlough programs across the region continue to make it tough to really get a clear picture of underlying labour market conditions for the time being.
Eurozone January Retail Sales Report
- January retail sales -5.9% vs -1.4% m/m expected
- Prior +2.0%; revised to +1.8%
- Retail sales -6.4% vs -1.2% y/y expected
- Prior +0.6%; revised to +0.9%
Eurozone retail sales fell more sharply than expected, as virus restrictions and muted winter sales led to generally depressed consumption activity at the start of the the year. Looking at the details, sales for food, drinks and tobacco rose by 1.1% for the month, but non-food products (ex fuel) fell sharply, by 12.0%, for the month of January.