Best of the Week
Most Popular
1.Oil Wars 2016 - US vs Russia vs Saudi Arabia vs Iran - Nadeem_Walayat
2.Crude Oil Price Crash Triggering Global Instability, Trend Forecast 2016 - Nadeem_Walayat
3.Stock Market Crash - Last Week was The 2nd and Final Warning... - Clive_Maund
4.Stock Market Crash Apocalypse or Bull Market Severe Correction? - Nadeem_Walayat
5.TShipping Said to Have Ceased… Is the Worldwide Economy Grinding to a Halt? - Jeff_Berwick
6.Crude Oil Price Crash Catastrophe, Independant Scotland Literally Begging to Rejoin the UK - Nadeem_Walayat
7.Summers: Global Economy Can't Withstand Four 2016 Fed Hikes - Bloomberg
8.Gold And Silver: New World Order: Public Be Damned, Preferably Dead - Michael_Noonan
9.Rigged U.S. Ttreasury Bond Market Double Barreled Hidden Q.E. To Infinity - Jim_Willie_CB
10.Major Stocks Bear Market Awakening - Zeal_LLC
Last 5 days
It's Stock Market Panic Time! - 9th Feb 16
Gold Stocks Picks for Patient Pickers - 9th Feb 16
Oil Price Collapse U.S. Recession Odds 2016 - 9th Feb 16
Preparing for Crisis - It's About Risk Mitigation and Capital Preservation - 9th Feb 16
Top Silver Mining CEO: Don't Laugh, We Could See Silver $100+ - 8th Feb 16
Gold, Investment Leadership Changes Permanent? - 8th Feb 16
Stock Market Panic Decline Begins... - 8th Feb 16
How to Save Money By Growing Your Own Homegrown Tomatoes Indoors From Seeds - 8th Feb 16
US Economy Slides One Step Further Towards A Recession - 8th Feb 16
Gold Bear Market Bottom : Mr. Bear has left the PM Sector for Greener Pastures - 8th Feb 16
Stock Market At Important Support - 8th Feb 16
David Cameron Humiliated in Poland Over Refusal to Stop Taking UK Benefits, BrExit or Super State? - 8th Feb 16
Why Crude Oil Prices Could Continue FALLING From Here - 7th Feb 16
Stock Market S&P, NAS Best, Most Reliable Answers Come From The Market And You - 7th Feb 16
Stocks Bear Market Continues - 7th Feb 16
Silver COT Paving Way for Sustained Upside Breakout Sharp Rally - 7th Feb 16
US Dollar Double Top, Gold Prospects Brightening Rapidly - 7th Feb 16
Gold And Silver - Is A Bottom In? Nothing Confirmed - 7th Feb 16
Gold Stocks Something has Changed - 6th Feb 16
UK Interest Rates, Economy GDP Forecasts 2016 and 2017 - 6th Feb 16
Gold Price, Mining Stocks Rocket Higher - 5th Feb 16
Crude Oil Price Bottoms and Blues - 5th Feb 16
Gold and Silver: Ripe for a Recovery! China May well Change the Game - 5th Feb 16
How Pension Plans are Responding to Financial Repression - 5th Feb 16
Senior Gold Producer Goldcorp Takes Large Stake in Nevada's Gold Standard Ventures - 5th Feb 16
Tips for Smart Oil and Natural Gas Investing 2016 - 5th Feb 16
Another Corporate Giant Is Leaving the U.S. – What This Means for You - 4th Feb 16
TPP is Economic Warfare, Trade Can Make Everyone Worse Off / Governments are Stupid - 4th Feb 16
Gold and Stock Markets Inflection Points Galore - 4th Feb 16
Putin Cries Dyadya (Uncle), Is Saudi Arabia Listening? - 4th Feb 16
Gold Price Golden Bottom? Video - 4th Feb 16
Look North for Value-Priced Growth in Healthcare Biotech Stocks - 4th Feb 16 - TLSReport
BrExit EU Referendum - Britain's FINAL Chance for Freedom From Emerging European Superstate - 4th Feb 16
HUI Now Confirming Gold Price Move Higher - 4th Feb 16
Crude Oil Price Forecast 2016 As Good As It Gets - 4th Feb 16
Gold and Silver More 'Flight To Safety' Active February - 3rd Feb 16
Raytheon Company: A Defensive Stock for a Defensive Market - 3rd Feb 16
Is Silver Really a Weak Link - 3rd Feb 16
Gold to Beat Stocks 2016? - 3rd Feb 16
David Chamberlain Cameron, Britain's Last Chance for Freedom From Emerging European Super State - 3rd Feb 16
EU UK Draft or Daft Agreement By Donald Tusk to Members of the European Council in Full - 2nd Feb 16
Europe: Why It's Going to Get a Lot Worse Before It Gets Better - 2nd Feb 16
The Next Generational Bust Is Coming, Stock Market 70% Collapse - 2nd Feb 16
The Coming Stock Market Decline May be a Monster - 2nd Feb 16
S&P 500 Has Likely Entered a New Bear Phase - 2nd Feb 16
How and Why To Move Your Assets Offshore Before the Financial Collapse - 2nd Feb 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Global Financial Crisis 2016

Euro Zone New Record Unemployment, U.S. Personal Income Plummets

Economics / Great Depression II Mar 03, 2013 - 10:57 AM GMT

By: Barry_Grey

Economics

Economic statistics released this week reflect a further weakening of the world economy and a further fall in the living standards of the international working class.

Reports on unemployment, manufacturing activity, economic growth and personal income in Europe, China and the United States point to an overall slowdown in economic growth and a rise in unemployment and poverty. They coincide with new moves by the European Union and the Obama administration in the US to slash social spending and public-sector jobs and wages. These measures mark an escalation of the class-war policies that have fueled the economic slump and already brought untold suffering to hundreds of millions of workers.


On Friday, the European Union statistics agency Eurostat reported that unemployment in the 17-nation euro zone hit a new record in January of 11.9 percent, up from 11.8 percent in December. For the 27-nation European Union as a whole, the official figure for January was 10.8 percent, up from 10.7 percent the previous month.

There were nearly 19 million unemployed people in the euro zone, an increase of 200,000 from January, according to official figures. In the whole of the EU, there were 26.2 million jobless workers, 222,000 more than in December. The real situation is even worse than these staggering figures indicate, since they do not take into account millions of people who have dropped out of the labor market.

The highest reported rate was in Greece, at 27 percent. Spain was close behind, at 26.2 percent. The jobless rate in Italy shot up to 11.7 percent in January, marking the country’s worst unemployment level since 1992.

Youth unemployment in Europe is at Depression levels. Across the euro zone it stood at 24.2 percent in January, up from 21.9 percent in January of 2012. In the EU as a whole the unemployment rate for people under 25 rose to 23.6 percent from 22.4 percent.

The jobless rate for Greek youth was an astounding 59.4 percent. In Spain it was 55.5 percent and in Italy, 38.7 percent.

It is no accident that the countries with the most disastrous jobless rates have been the focus of successive packages of austerity measures by the European Union, the International Monetary Fund and the European Central Bank, which are acting as agents of the global banking giants and hedge funds.

Separate reports released Friday showed a marked slowdown in manufacturing activity in much of Europe in February. In the euro zone as a whole, the gauge of factory activity was unchanged from the previous month at 47.9. (Any reading below 50 indicates contraction). This marked the 19th consecutive month of shrinking manufacturing.

The figure for Germany was marginally higher, but Italy’s dropped sharply to 45.8 from 47.8. The most stunning decline was in the United Kingdom, where factory activity fell to 47.9 from 50.5 in January, confounding economists’ predictions of an increase. Factory payrolls in the UK declined at the fastest rate in more than three years.

Another indication of the gathering slump in Europe is a report issued Wednesday by the European Central Bank showing that euro zone loans to the private sector contracted for the ninth month running in January. Loans fell 0.9 percent from the same month in 2012.

In the US, the Commerce Department on Thursday upwardly revised its estimate of gross domestic product (GDP) growth in the 4th quarter of 2012 from minus 0.1 percent to plus 0.1 percent, meaning the US economy has stalled from its previously anemic pace. The US gross domestic product grew by only 2.2 percent in 2012—a pace far below that required to significantly bring down the unemployment rate.

Government austerity was the main factor in sharply slowing economic growth from the previous quarter, as federal outlays fell at a 14.8 percent annualized rate.

The most stunning indication of the depth of the social crisis was provided by a US Commerce Department report released Friday showing that personal income fell by 3.6 percent in January, the largest monthly drop since January of 1993. Taking taxes into account, personal income plunged by a record 4.0 percent. The report said that outlays for payrolls for manufacturing, goods producing industries, services producing industries and government agencies all declined in January from the previous month.

Another report, issued by the Labor Department’s Bureau of Labor Statistics on Tuesday, showed that layoffs by US manufacturers increased last month. There were 357 mass layoff events during the month, resulting in 43,068 initial jobless benefit claims, an increase of 22 percent from December.

The global slump is also hitting China, the world’s second largest economy. Two separate reports on Chinese manufacturing activity released Friday showed a marked slowdown in the rate of growth. The official Purchasing Managers’ Index was 50.1 for February, the weakest reading in five months and down from January’s reading of 50.4.

A separate gauge published by HSBC Holdings and Markit Economics dropped to a four-month low of 50.4, down from 52.3 in January.

World Socialist Web Site

Barry Grey is a frequent contributor to Global Research. Global Research Articles by Barry Grey

© Copyright Barry Grey , Global Research, 2013

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History