Unemployment in Europe goes parabolic

thetrader's picture


European unemployment figures continue to look nasty. Charts are exploding to the upside, as unemployment hits 15 year highs. The skyrocketing unemployment, and the fact that the fertility rates are insufficient, are two facts the Bazooka and the LTRO (not even with the LTRO spent on bullfights) can’t take care of.

Europe’s most important charts below.


Charts Scott Barber of Reuters.

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Mon, 04/02/2012 - 12:16 | 2309822 Zero Govt
Zero Govt's picture


the unemployment cues are equal to the amount of productive wealth sucked/destroyed over the years by that toilet called Govt

Big Govt = Big Unemployment  ...will we ever learn!

Mon, 04/02/2012 - 12:06 | 2309792 847328_3527
847328_3527's picture

No 'shovel-ready jobs' over there?

Mon, 04/02/2012 - 11:31 | 2309702 marathonman
marathonman's picture

Portugal exports fantastic Port wine.  That's about it though.

Mon, 04/02/2012 - 11:27 | 2309686 nobusiness
nobusiness's picture

You can't play on an ipad and keep a job.  Lets be realistic.

Mon, 04/02/2012 - 10:38 | 2309542 Snakeeyes
Snakeeyes's picture

It is a Nanny State problem AND a Central Bank problem. Look at Spain vs US. Lookl similar? 


Mon, 04/02/2012 - 11:00 | 2309609 Sandmann
Sandmann's picture

Which figures are you using ?  Eurostat uses ILO calculation modes buty has adjustments.....


The situation is simply more of the same and has been a running sore. It is why the European economies were running Deficits even in so-called Boom periods - Unemployment was masked by debt-fuelled Consumption instead of Investment in productive capacity employing Citizens. Bankers prefer to sell credit for Consumption over Investment - less risk more margin


Mon, 04/02/2012 - 10:32 | 2309523 Bullframe
Bullframe's picture

Always nice to see that the Netherlands, one of the core Eurozone countries is again not in the stats. 
It are only the PIIGS + Germany + France and that is not the full eurozone.  

For anybody who cares, the Netherlands have an unemployment rate of 4,9% (2011: 4,3%) with only Austria in front (4,2%).

The stats for all EMU countries: http://chartsbin.com/view/5578 

Whenever ZH/financials talks about the eurozone and they pull the stats from every EMU country except for the Netherlands (or Belgium but never mind about them) they should atleast say it's not the complete picture.

Austria (4.2%), the Netherlands(4.9%) and Germany(5.7%) are still well below parabolic moves (all under 5.7% and Germany did not INcreased but DEcreased there unemployment compared to 2010 and 2011) 

Are we awsome or what. 

Mon, 04/02/2012 - 12:26 | 2309857 frenzic
frenzic's picture

NL is almost always left out of the equation, I have stopped looking for the figures a long time ago (I certainly do not check any national media nor talking heads) and just watch some five different temp agencies which are handily situated just across the street. They have no, or at best hardly any people coming in each and every day. There are no real jobs and those that need them have stopped looking for them is my best guess. Most are on the gvt handout list. Those reported numbers are B..cr.p. I have experimented last year to see if there was some well paying steady job to be had considering my background as a legal policymaker and guess what? Best offer was to become a busdriver. Had to pay 5000 euro towards the education though. If it was not such a grim reality it would actually be funny. We get screwed and are screwed. Thank some god I am self employed. Wouldn't be able to top up my Benz otherwise and my staff would be on the doll too.

Mon, 04/02/2012 - 10:01 | 2309419 William113
William113's picture

I don't see want the big deal is. California has that many. Not according to the BLS of course.

Mon, 04/02/2012 - 09:55 | 2309395 swissaustrian
swissaustrian's picture

Here you have the explanation why Germany doesn't seem to be in a hurry to "save" the Euro. They fuck their neighbours royally, because the adjustment mechanism of fluctuating currencies has been eliminated.

Mon, 04/02/2012 - 18:52 | 2311161 taeonu
taeonu's picture

Germany is benefiting from loaning money to the periphery countries to buy German goods they couldn't otherwise afford.  Kind of like the vendor finance scheme that China and the U.S. have going.


The euro zone is one giant vendor financing scheme

 In a fixed exchange rate environment like the euro area, you don’t have currency fluctuation issues. So persistent current account imbalances as we see within the euro zone are really a form of vendor financing.


Vendor financing works successfully as long as the lender makes sure the customer can pay back the loans.


And so it is in Europe as well. The lurid Telegraph story about German-made Porsches bought in Greece shows you an extreme example of how this works. The reality is you can’t have Germany and Spain both running current account surpluses with each other at the same time. Unless the euro zone as a whole runs a current account surplus as large as Germany and the Netherlands, then you are automatically going to have a sort of vendor financing relationship going.



Mon, 04/02/2012 - 12:18 | 2309829 Zero Govt
Zero Govt's picture

so you want Germany to stop being productive and competitive ...or other countries to get off the sofa and shape up?

Mon, 04/02/2012 - 09:29 | 2309324 ElvisDog
ElvisDog's picture

I always find it odd that "low birth rates" are mentioned in stories about high unemployment. Exactly how would having more mouths to feed and more jobs to generate with a higher birth rate help the unemployment problem? Perhaps Egypt can shed some light on my question?

Mon, 04/02/2012 - 09:25 | 2309316 Widowmaker
Widowmaker's picture

Asian elderly care is a cultural value. Elderly rot is Western hubris in the name of record bonuses.

Eating the youg in fraud-despiration is the fascist solution.

The boomers are to be commended for the fall of the West and the support of fascism for their problems and collapse of the US republic against.

Mon, 04/02/2012 - 09:08 | 2309281 Seasmoke
Seasmoke's picture

its going to end up as old vs. young civil war......the staus quo is in trouble

Mon, 04/02/2012 - 10:42 | 2309557 GeezerGeek
GeezerGeek's picture

If "the young" revolt against "the old", in whose basements will they live?

Never trust anyone over 30 - IF they work for the government.

Mon, 04/02/2012 - 12:21 | 2309839 Zero Govt
Zero Govt's picture

it's not about age, it's about private (productive) sector versus public (parasite) sector

the youth are right to target Govt as the problem, but not to ask for "more" from Govt but to demand "less" Govt

i'm not too confident they get it

Mon, 04/02/2012 - 09:57 | 2309405 Quinvarius
Quinvarius's picture

The way the system is imploding, it is going to look a lot more like bumfights than old vs young.

Mon, 04/02/2012 - 09:07 | 2309273 tedstr
tedstr's picture

When you export your employment to third world communist agrarian countries, what did you think you would get in return?.....anyone....anyone....Beuhler......anyone?     that's right......third world, communist agrarian  economy.  It's a closed system people.  You can only exploit market inefficiencies for so long until it self corrects.

Mon, 04/02/2012 - 08:56 | 2309243 Bahamas
Bahamas's picture

The 1300 banking crises that hit Florence Italy with domino effect that caused many banks to defaults (Bardi, Peruzzi, Donati, etc) only recovered when the plague killed half of the population increasing the money per capita. Money back then was the golden "Fiorino" and the silver "Grosso".


Mon, 04/02/2012 - 08:53 | 2309237 BandGap
BandGap's picture

Question for UK and other inhabitants of EU - are youths who are enrolled in "training" counted as unemployed? That is to say, when youths are paid by the government to get re-educated do they show up on these stats?

The UK and the Irish stats might be much, much higher.

Mon, 04/02/2012 - 11:02 | 2309619 Sandmann
Sandmann's picture

Answer: NO they are off the Stats which is why these Scam "training" Companies grow fat on giving them a video camera and say go play you are being "trained" and are not "unemployed". In addition those <18 are not counted as Unemployed anyway, nor are men >60

Mon, 04/02/2012 - 09:10 | 2309286 Colonial Intent
Colonial Intent's picture

Depends, i have a friend who has taken 6 young jobseekers on and the govt pays their wages for 6 months in the hope that the hires them, after that he has no obligation to keep them

Mon, 04/02/2012 - 08:44 | 2309222 Iconoclast
Iconoclast's picture

Had no idea that Greece and Spain had always been very bad for youth unemployment..But the rocket in the uk and Ireland is possibly the most spectacular..wow..

Mon, 04/02/2012 - 07:58 | 2309161 overmedicatedun...
overmedicatedundersexed's picture

"globalism so you do not have to work " the NWO motto. the motto they mutter to themselves :" more power and profit from the rape of nations to our pockets"

Mon, 04/02/2012 - 07:29 | 2309123 timbo_em
timbo_em's picture

The German figure according to German labour statistics is actually 7.2 percent. They apply tighter accounting rules than eurostat. So I guess it's fair to say that the actual figures in Spain, Greece, etc. are even higher than shown here.

Mon, 04/02/2012 - 07:29 | 2309119 Element
Element's picture

You got a NET graph there? (sans division into states)

Mon, 04/02/2012 - 07:17 | 2309113 apberusdisvet
apberusdisvet's picture

Lots of cannon fodder for the next big one.

Mon, 04/02/2012 - 08:17 | 2309182 Its_the_economy...
Its_the_economy_stupid's picture

A simply horrifying comment...even if true.

Mon, 04/02/2012 - 07:17 | 2309111 disabledvet
disabledvet's picture

one possible avenue of protection for the EU would be for Great Britain to announce plans to begin "discussions of entry" into the euro zone. Think of it as a "buy low/sell high" approach.

Mon, 04/02/2012 - 07:30 | 2309120 Ghordius
Ghordius's picture

the brits are utterly convinced that fast devaluation when needed is the only way to go and that keeping industries on the continent is an absolute waste of time.

seriously, the have invented the capitalist sub-model that requires globalization, with all companies listed on the stock and bond market, the industries wandering on the globe looking for cheap labour and less room for family-owned small and medium enterprises and it's complementary regional banking system.

and I don't think the other eurozone members would just let the UK in without having a small word about limits on rehypotecation and a Tobin Tax...

in short: the City of London does not want less currencies, it's bad for biz - as any monetary oversight, the branches there have a good relationship to the Bank of England

Mon, 04/02/2012 - 09:05 | 2309265 xela2200
xela2200's picture

England is all out of margaret thatchers.

Mon, 04/02/2012 - 07:10 | 2309103 Azannoth
Azannoth's picture

Looks like the unemployment rates, interest rates, deficits etc. are simply reverting to the mean from before the Euro. So the Euro is already dead for all intents and purposes

Mon, 04/02/2012 - 07:18 | 2309114 Ghordius
Ghordius's picture

I'd say the effects from the periphery's sovereign debt binge "because all euro debt is equal" are waning - the reasons to keep the euro are still there and are actually increasing in urgency

Mon, 04/02/2012 - 08:36 | 2309205 Cast Iron Skillet
Cast Iron Skillet's picture

yes, the PIIGS took advantage of the cheap interest rates available to them through the Euro. Which makes the banks that lent to them culpable.

Mon, 04/02/2012 - 07:10 | 2309102 rajat_bhatia
rajat_bhatia's picture

LOL, come to Africa

Mon, 04/02/2012 - 06:59 | 2309097 Troy Ounce
Troy Ounce's picture


50% youth unemployment in Spain and Greece?


Can we have John Williams of www.shadowstats.com please have a look at these stats?



Mon, 04/02/2012 - 07:28 | 2309110 Sudden Debt
Sudden Debt's picture

or they could start looking for El Dorado and Alexander The Great's tomb for gold...

Mon, 04/02/2012 - 08:57 | 2309250 Poor Grogman
Poor Grogman's picture

A shovel ready project if ever there was one.

Mon, 04/02/2012 - 08:15 | 2309179 battle axe
battle axe's picture

Bring on the riots.....

Mon, 04/02/2012 - 07:18 | 2309109 Sudden Debt
Sudden Debt's picture

Sadly it's true... unless we get those 6 year olds back into the sweatshops Greece and Spain won't recover.

Mon, 04/02/2012 - 08:53 | 2309219 Popo
Popo's picture


But we do need to get Spanish *adults* back into labor.  

The notion that Spain and Portugal are developed, first-world economies is somewhat laughable.  And Greece?  LOL.  What does Portugal export?  Sheep?  Olive oil?   Sure, they have some manufacturing -- but how do they compare to say, Korea?  or even Thailand?  Chuckle...

Only 10 years ago, we were calling Spain an "emerging market".  But nobody really thinks of Spain as "emerging" anymore.  Apparently they outgrew that definition.  How?  Did they industrialize?  Not exactly.  Did anyone start manufacturing flat-screen TV's, laptops or cellphones?   Uh.. no.   But they did increase their debt and blow an enormous bubble.  They did quintuple the value of real estate and extend loans to people with zero income.  And they did build loads of shiny skyscrapers and develop ancillary, non-export industries to support their real estate boom (insurance, retail banking, legal services and the like).  Is that what we're calling "emerged" these days?  Apparently.  Most people with a brain would call it a "ponzi".

If Spain wants full-employment, they're going to need to accept what consitutes "employment", and they're going to need to think in terms of exports and balance-of-trade ... and those jobs are going to look a lot more like Chinese employment than German employment.

Of course,  downward adjustments aren't possible according to the "models" of modern economists, bankers or politicians.  Another round of QE perhaps?  Ah yes, that should do the trick.

Mon, 04/02/2012 - 11:16 | 2309650 Havana White
Havana White's picture

In other words, Popo, Spain and the others will have to get with the program -- grow or die, as per the fractional reserve design.  That is the problem, the ever-hungry money system.  Those here who smirk at "lazy youth," the "nanny state" and the like are in effect making excuses for the bankster ponzi; Benny and his ilk must appreciate such efforts.

Mon, 04/02/2012 - 12:18 | 2309824 Schmuck Raker
Schmuck Raker's picture

"Those here who smirk at ... the "nanny state" and the like are in effect making excuses for the bankster ponzi; Benny and his ilk must appreciate such efforts."

No, I think you misstate what most here argue.

Which is that the "nanny state" and the "bankster ponzi" are mutually necessary to each other. And BOTH are undesirable.

Mon, 04/02/2012 - 09:20 | 2309305 Seasmoke
Seasmoke's picture

they do have the best soccer team

Mon, 04/02/2012 - 11:02 | 2309622 Carl Spackler
Carl Spackler's picture

Play more futbol...central planning style !

The Spaniards could set up the Spanish 4th, 5th, 6th, 7th, 8th, 9th, and 10th Divisions as new professional leagues.

Although this doesn't help unemployed females, it gets males back to "work."

Mon, 04/02/2012 - 06:56 | 2309096 Anne Ominous
Anne Ominous's picture

Digging Ditchez?

Mon, 04/02/2012 - 08:39 | 2309211 Popo
Popo's picture

Just default on all debts and then collapse the value of the Euro, equities and European real-estate until European labor can can compete with Chinese labor and get rid of the unsupportable (and widely abused) social-services of the European nanny-state and unemployment goes away.   It's very simple.  The only downside is that the banking system implodes, and the wealthiest people in the world lose their shirts.

Bring it on.



Mon, 04/02/2012 - 11:01 | 2309617 GeezerGeek
GeezerGeek's picture

Forcing the value of the Euro to collapse will not work as long as other currencies can be devalued. We face a global economic conundrum: almost no people or nations are willing to live within their means. Until we overcome that hurdle we can arrive at no solution.

The job situation in an advanced technological society may require a totally new meme. What would employment be like if we all had magic wands that could create anything we needed with a simple snap of the wrist? Would anyone need to work then? Would the employment rate be 100%, and would it matter?

Technology has allowed us to produce more with fewer workers, so maybe we need all the distractions (Xboxes, streaming video, ZH) to fill the time available to the unemployed. I don't know if humanity could ever get to the point where 1% of the population could provide production to meet the needs and desires of the other 99%, but I wonder if a stable society could even exist under those circumstances.

Mon, 04/02/2012 - 11:47 | 2309739 JeffB
JeffB's picture

"Technology has allowed us to produce more with fewer workers,"


The biggest driver of that train, by far, is the use of cheap fossil fuels for work. Faster and better computers and communication can help somewhat, but if we truly are at the end of cheap fossil fuels and don't come up with a similar alternative, productivity will drop significantly irrespective of technological advances, at least with respect to actually building and transporting things (other than data).

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