Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

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.


© 2005-2019 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

6 Critical Money Making Rules