"The cross-country divergence is still very, very significant, much more so than in other data. There is a lag right now which is usual, but unless there is another shock to the economy, the unemployment rate should decline."
-Frederik Ducrozet, a senior euro zone economist at Credit Agricole
Pull the trigger or stay pat? These two questions will be torturing Mario Draghi's mind until this Thursday, when policymakers will gather to assess the current state of the 18-nation's bloc's economy. Inflationary pressure is weak, growth is sluggish, while practically all sectors of the economy are sending worrying signs. The only bright spot, if we can call it this way, is the labour market, which has finally stabilized.
A monthly report from Eurostat showed that the overall jobless rate stood at 11.8% in March, a level previously reached in December, and just slightly below a record of 12% that was recorded last year. Analysts have completely lost their faith in the Eurozone, as they have projected a reading of 11.9%. There were 18.91 million people without a work in March, a level 22,000 less than in the previous month. As always, unemployment in Austria and Germany stood at the lowest levels of 5%, while Italy and Spain reported on a 13% and 25% unemployment, respectively. Regarding the broader European Union, there are some 25.699 million men and women, who are unemployed. After two years of recession the economy is finally improving and the recent prove was a pickup in the manufacturing and the number of new orders. Households, however, are among the last to feel the benefits of this recovery, as inflation stands in the "danger zone".
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