Portugal’s unemployment rate crept lower between June and July, from 14.1% to 14% according to Eurostat figures.
Compared to the position last year, the drop from 16.3% in July 2013 to the current 14% is the largest year-on-year decline in the EU alongside Hungary.
In terms of numbers, there were 9,000 more in registered employment in July than in June this year and 125,000 more than a year ago.
The Portuguese rate of 14% compares with an average unemployment of 11.5% across the eurozone. Despite the decline, the rate in Portugal is still the fourth highest in the region, with Greece topping the chart (27%), followed by Spain (24.5%) and Cyprus (15%).
The lowest jobless rates remained in Germany and Austria (both 5%). Unemployment in the US, by contrast, was 6.2%.
The UK did not post rates for either June or July 2014, but there too the trend appeared to be falling from 7.7% in July 2013.
The data for Portugal is a welcome boost for a government which a few days previously gave its estimate for the year end unemployment rate, predicting a fall by the end of December 2014 to 14.2% from 17.7% in December 2013.
Passos Coelho’s tattered team managed a smile at the figures and claimed the reason for the fall was due to the 'positive impact of increased domestic demand working its way through to the labour market,' sadly this is the same increase in domestic demand that is pushing Portugal’s trade deficit way into the red.
One benefit is the reduction in taxpayers’ money spent on unemployment support which has improved the social security deficit to minus €507 million.
Youth unemployment continues to be the problem area despite headline grabbing schemes and initiatives to reduce the rate.
Portugal has the third highest youth unemployment even though tens of thousands of young people have left the country to work abroad which serves to make the figures look less dire back in Portugal
Eurostat stated that the youth unemployment rate was 35.5% in July, down from 36.4% in June and down from 37.6% in July 2013.
Whatever the fine print, one in three young people on the government register and still in the country, does not have a job.
Comments
I see an increase in domestic consumption and a worsening import situation; a massive exodus of young Portuguese; and an increase in work opportunity over the summer. If these markers continue to show a positive trend during the dead of winter, I shall be more inclined to believe the government case.
Editor, even if Passos Coelho and his team were ejected from their governmental seats, they would be replaced by apparatchiks from the alternative party from whom they and their policies are indistinguishable.
Why not hold a competition for the most memorable achievement of this government? For me it is the continuing and increasing exodus of young educated Portuguese.