Eurozone unemployment hits five-year low

EUROZONE unemployment fell to five-year lows in June, data showed yesterday, heralding stronger domestic demand and strengthening the case for European Central Bank interest rate rises.

EU statistics agency Eurostat said unemployment in the 12-nation eurozone fell to 7.8% in June from 7.9% in May, the lowest level since August 2001. Economists had expected an unchanged jobless rate.

“Genuine improvement in the euro zone’s labour market will harden the ECB’s resolve to make monetary policy less accommodative,” said Howard Archer, economist at Global Insight.