Slumping eurozone economy forces job cuts

Written on:July 2, 2012
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Job opportunities plummeting in eurozone

As revealed by the latest statistical reports, the rate of unemployment in the eurozone has risen to a record high in May amid an increasingly weakened manufacturing sector.

Figures churned out by EU statistics body Eurostat, a staggering number of 17.56 million people do not have any jobs at the moment, which amounts to an unemployment rate of 11.1%.

Experts say the latest data represent a bleak picture for the eurozone economy where a number of firms have cut their budgets and spending targets out of fear that the ongoing debt fiasco across Europe can significantly affect future growth prospects.

The Eurostat survey was found consistent with results from Markit’s Purchasing Managers’ Index (PMI), the June readout of which showed contraction in the manufacturing sector.

Out of the 17 blocs in the eurozone, Spain has the most severe rate of unemployment with 25% of its citizens being jobless. The condition prevailing in Spain, along with that in a few other countries, has shown no signs of improvement over the past 14 months.

As companies continued to struggle with their employee retention issues, job cuts accelerated over a period of two and a half years starting from January 2010, stamping down the Purchasing Managers’ Index from 47.1 in May to 46.7 the following month, reports noted.

“Companies are clearly preparing for worse to come, cutting back on both staff numbers and stocks of raw materials at the fastest rates for two-and-a-half years”, chief economist at Markit Chris Williamson said.

Brussels summit coincides with euro slump
Moody’s cuts credit ratings of 15 banks
Spain’s borrowing capacity nearing zero


2 Comments add one

  1. kafantaris says:

    We’re so busy complaining about what we haven’t got that we have no time left to show our appreciation for what we do.
    Ingratitude is a painful thing — if you’ve ever been on the other side. Christ never condoned it, and neither did Mohammad or Buddha. Not even our me, myself and I culture condones it.
    Why then are we condoning ingratitude towards our politicians?
    Have they done so little for us, our towns, our states and our country that we have nothing but contempt for them?
    Do you think the reason that we are not as bad as others elsewhere is because of their lack of diligence?
    Let us pause then and give them thanks — not for a perfect job, but for making a better lemonade from the lemons we’ve all been dealt with the world over.

  2. William says:

    Whats is to appreciate? Job cuts, bank frauds, healthcare frauds…its all a big shit…

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