Europe Stuns With "Surprising" Record High Unemployment Print, Inflation At 4 Year Low; Euro Tumbles

Tyler Durden's picture

Those following the Euro FX pairs saw a plunge at 6 am Eastern, when Eurostat released the latest Eurozone unemployment and inflation statistics. They were, in a word, abysmal. After the August unemployment data finally saw a modest drop forcing many to announce the end of the European depression, not only did the the September number revise the August print from 12.0% to 12.2%, a new record high as 73,000 thousand people became unemployed, but more importantly made the September unemployment rate 12.2% as well following another 60,000 Eurozoneans losing their jobs, effectively meaning that for all the talk of a European recovery, its unemployment rate keeps hitting new all time record highs every single month.

Broken down by country:

And yes, that sudden housing mecca for all rental condo flippers, Spain, was just found to also have a record high unemployment rate of 26.6%. So much for that.

But the worst print for Europe is not in any of the above charts or tables, but is and has always been its youth unemployment, as an entire generation is unable to find a productive life. In this case, the EA17 Under 25 unemployment just rose to a new record high 24.1%, from 24.0% in August, driven by Spain at 56.5%, Cyprus 43.9% (was 28.0% a year ago - thanks template), Portugal at 36.9%, and Greece somewhere in the 58% ballpark.


Finally, rounding out the abysmal picture was the Euro area's just reported October CPI, which tumbled to 0.7%Y/Y, down from 1.1% in September and below the 1.1% expected. This was the weakest annual inflation print in the continent since 2009, and is a bright red flag for Draghi that everything he has done so far has failed to stimulate inflation, but at least his precious EUR is at 2 year highs against the dollar. Alas, not for much longer as the time to reprice the European currency has arrived.


End result of all of the above:

And going much lower.

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GetZeeGold's picture



Who could have seen it coming really?

Rory_Breaker's picture

Why dont they establish a vice ministry of happiness?

Headbanger's picture

And Ministry of Silly Walks to stimulate more creative ways of walking instead of the same old boring one foot in front of the other & repeat crap.

GetZeeGold's picture



Why dont they establish a vice ministry of happiness?


If they're handing out free toilet paper....I'm all for it!


We put the progress in progressivism.

GVB's picture

This system is going down. Financial repression not working. Time for plan B, Mr. Draghi. Start up your printing presses, create the inflation YOU NEED.

XAU XAG's picture



And give out free mobile phones!



jubber's picture

However FTSEMIB rallies 300 points on this record unemployment, IBEX up 150, and Germany tries to retake 9000

IndyPat's picture

Someone email the BLS spreadsheet /w the "special" formula to the EU. That will fix the glitch. That, or sequester and furlough those that cook the stats....seems to work here.

Martdin's picture

So, about that rate cut...

jubber's picture

10y Spain just hiy 4:00% !!!!!


10y Italy 4.13%

goldenbuddha454's picture

They need to go their Uncle Ben and ask him to buy some of their bonds.

RiverRoad's picture

As long as Europe's a mess there's no need to worry about tapering.

JDFX's picture

Reality implies, global workforce should continue to contract , as humans become technologically redundant .

Profits should go up, but labour costs are a liability to any organisation , hence they are an expense item found in the accounts. 

Add in the fact the UN states consumers need to consume much less for a sustainable planet means we can expect unemployment to increase globally much much more...


It's what they are working towards, less global consumption and minimise expense in the balance sheet.


Now, whose economies are consumer driven ?   


The UN is working for much less mindless consumption, globally. Not what CNBC talks about daily is it ?  Still never let the real intent get in the way of news. After all it's what makes market speculation possible.


It's all about the intent .

thestarl's picture

Was it Henry Ford that said to the union official in the first rudimentary stages of automation "see that machine there son it pays no union dues",and responded the union official"it does'nt buy a car either".

overmedicatedundersexed's picture

EU above 10%, (in the USA if truth be told as well)..the economy of the common man has reflected the growth of the police state as an inverse.,.justice and freedom on the run.

hugovanderbubble's picture

Jubber, its the biggest sell opportunity in Spanish Bonds Ever

I expect a 8-9% with Catalonia Default

hugovanderbubble's picture

Catalonia is in default ZH, Ultranationalists will crash spain.

hugovanderbubble's picture

Spanish Bonds will suffer Debt Haircuts across different tranches, Margin calls will  force Rajoy  to request second Precautionary Credit Line (PCCL) from 180 Bn.Euros

hugovanderbubble's picture
Message to ALL PENSION FUNDS: IF U PLACE UR MONEY IN SPANISH ASSETS U WILL LOSE FROM 50 to 100% hugovanderbubble: NO RECOVERY RATE hugovanderbubble: SPECIALLY IN MID AND LONG TERM BONDS hugovanderbubble: SPAIN IS IN DEFAULT AND ITS TRUE hugovanderbubble: 100%
goldenbuddha454's picture

Low inflation means only one thing, set the printing presses on turbo mode.

29.5 hours's picture



The news from Europe is not bad enough to lift stocks. But it might be bad enough in Italy. FTSE Italia is doing well today.



Ghordius's picture

Tyler, re "...following another 60,000 Eurozoneans losing their jobs..." - my understanding is that the proper term in English would be Eurozoners

the older English term is Continentals (from Continental Europeans, as in the old Times headline: "Heavy fog over Channel. Continent isolated."), though of course this includes all non-British-insular Europeans up to Russia

though increasingly the term being used in England is just "Europeans", as in "England cuts itself from Europe, Scotland, with Ireland, stays behind in the Deathzone", as the Daily Telegraph might write in future


meanwhile I feel picky, today, so I'll also point out that this phrase is a bit strange or even misleading "...the latest Eurozone unemployment and inflation statistics. They were, in a word, abysmal."

yes, the Eurozone unemployment figures look very bad, at a total of 12.2%. But the inflation statistics (which include energy, at estimated minus 1.7% and include food) are at estimated 0.7%, which is not something I'd call abysmal

After all, the ECB has one mandate only: inflation (I'm missing Mr. Stabeeleetee, now)


all in all, this new bear raid on Spanish and Italian sovereign bonds seems to gather steam. it will be interesting to watch. I think it's safe to say that a lot of financial blood will be spilled. The only question is which

Draghi's merry band is collecting lots of kudos points by draining liquidity and shrinking the ECB's balance sheet. more firepower

Spain and Italy also collected lots of kudos by their restructurings. And the very fact that the Spaniards are not engaging in additional spending to palliate their unemployment problem generates special kudos

the Masters of the Universe behind this bear raid might find some well prepared defenses. though I'm a cynic, probably they will cut their pound of flesh and run early, leaving the followers to bleed, as so often in this kind of excercise

Element's picture

You're a cynic now?  So the naive-optimist finally ran out of sunny thoughts? wow, you really do need a dentist.

Abby Normal's picture

Now we finally know where those new Facebook users are coming from!

RaceToTheBottom's picture

Both the Euro and the dollar regions competing with each other as they spiral into FIAT oblivion. 

They must stay out of sync with each other so trivialities get blamed and the FIAT Money is not blamed...

XAU XAG's picture

"What ever it takes"



One day peeps will figure things out and fiat will be "pass the parcel" then we will get inflation, untill then energy and food and everything we really need will keep going up and everything we dont need will keep going down ..............hence low inflation basket.


Thease nut jobs wont change the basket to keep up them robbing the citizens

orangegeek's picture

deflation here we go


this is going to be bloodly ugly

Youri Carma's picture

The cherry on the Non-Recovery cake.