Eurozone: unemployment rate fell more than expected in July, the growth of the consumer price index accelerated

According to the report from Eurostat, in June 2021, the euro area seasonally-adjusted unemployment rate was 7.7%, down from 8.0% in May 2021 and from 8.0% in June 2020. Economists had expected a decrease to 7.9%. The EU unemployment rate was 7.1% in June 2021, down from 7.3% in May 2021 and down from 7.3% in June 2020.

Eurostat estimates that 14.916 million men and women in the EU, of whom 12.517 million in the euro area, were unemployed in June 2021. Compared with May 2021, the number of persons unemployed decreased by 487 000 in the EU and by 423 000 in the euro area. Compared with June 2020, unemployment decreased by 397 000 in the EU and by 339 000 in the euro area.

In June 2021, 2.967 million young persons (under 25) were unemployed in the EU, of whom 2.431 million were in the euro area. In June 2021, the youth unemployment rate was 17.0% in the EU and 17.3% in the euro area, down from 17.6% and 17.9% respectively in the previous month. Compared with May 2021, youth unemployment decreased by 112 000 in the EU and by 78 000 in the euro area. Compared with June 2020, youth unemployment decreased by 152 000 in the EU and by 110 000 in the euro area.

Separate data showed that euro area annual inflation is expected to be 2.2% in July 2021, up from 1.9% in June. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in July (14.1%, compared with 12.6% in June), followed by food, alcohol & tobacco (1.6%, compared with 0.5% in June), services (0.9%, compared with 0.7% in June) and non-energy industrial goods (0.7%, compared with 1.2% in June).