Analysis from the Financial Times, based on latest labour market survey results from the US and Europe, notes that continued high unemployment hinders consumption which could slow down the rate of economic recovery.
Grim jobs market reports on both sides of the -Atlantic highlighted on 8 January the ongoing human cost of the credit crisis and kept alive concerns over the sustainability of the recovery.
In the US, news that the economy shed another 85,000 jobs in December dashed hopes that a quickening labour market turnround could add momentum to the rebound.
Eurozone data showed that unemployment hit 10 per cent in November - matching the jobless rate in the US. It was the first time that eurozone unemployment reached double digits since the introduction of the single currency a decade ago. Both the US and the eurozone economies grew in the second half of 2009. But the jobs market continues to lag behind the recovery in output, with businesses reluctant to hire.
Full article from the Financial Times here.
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