The Largest Drop in Unemployment in the EU – In Croatia, 79 Thousand Fewer Unemployed Than Last Year

Croatia recorded the largest drop in unemployment in August compared to the same month last year among European Union countries, although it remains among the highest in the Union, according to data released by the European statistical office on Friday. In Croatia, the seasonally adjusted unemployment rate according to the International Labour Organization (ILO) methodology fell to 12.9 percent in August, down from 13 percent as reported in revised Eurostat data for July, Eurostat reported. Initially, EUROSTAT estimated its July value at 13.2 percent. In August of last year, it was 16.6 percent, which means that Croatia recorded the largest annual drop in the unemployment rate among EU countries according to available Eurostat data. Cyprus ranks second with a 2.6 percentage point drop in the unemployment rate year-on-year, to 12.1 percent.

Despite this, Croatia remains among the three EU countries with the highest unemployment rates. Greece leads the group with an unemployment rate of 23.4 percent in June, followed by Spain with 19.5 percent. The lowest unemployment rate among EU countries in August was recorded by the Czech Republic, at 3.9 percent, followed by Germany with 4.2 percent. According to Eurostat data, 237 thousand citizens were unemployed in Croatia in August, three thousand fewer than in the previous month. Compared to August last year, their number decreased by 79 thousand, according to Eurostat’s report.

Stagnation of Unemployment in the EU and Eurozone

At the level of the European Union, the unemployment rate remained at 8.6 percent in August for the fourth consecutive month, the lowest level in just over seven years. In August of last year, it was 9.3 percent.

There was no change in the eurozone either, where the unemployment rate according to Eurostat remained at the lowest level in five years, at 10.1 percent, for the fifth consecutive month. In August of last year, it was higher by 0.6 percentage points.

In the EU, a total of 20.973 million citizens were unemployed in August, of which 16.326 million were in the eurozone. This marks a decrease of 40 thousand in the EU compared to the previous month. In the eurozone, however, it increased by four thousand.

Compared to August last year, their number decreased by 1.578 million in the EU and by 875 thousand in the eurozone, Eurostat reported.

Youth Unemployment Slightly Decreased

In the age group up to 25 years, the unemployment rate in the EU slightly decreased in August, to 18.6 percent, down from 18.7 percent in the previous month. In August of last year, it was 20.1 percent.

Significant Drop in Youth Unemployment Among Europeans

In the eurozone, the youth unemployment rate also decreased by 0.1 percentage points compared to the previous month, sliding to 20.7 percent. In August of last year, it was 22.3 percent.

In the EU, there were 4.199 million young people unemployed in August, of which 2.927 million were in the eurozone. At the EU level, their number decreased by 381 thousand compared to the same month last year, and in the eurozone by 209 thousand.

Among member countries, Greece recorded the highest youth unemployment rate at 47.7 percent in June. Spain follows with 43.2 percent and Italy with 38.8 percent.

Eurostat did not have data on youth unemployment in Croatia in August. However, they raised the estimate of the youth unemployment rate in Croatia for the second quarter to 31.7 percent, up from 29.5 percent estimated in the August report. In the second quarter of last year, it was 44.6 percent, according to their data.

According to the latest Eurostat data, there were 59 thousand young people unemployed in Croatia in the second quarter, which means Eurostat raised the estimate from the August report by eight thousand.