"The [unemployment] numbers ... indicate ongoing labour market weakness, with further deterioration highly likely in the second half of the year"
- Ashley James, senior European economist at RBC Capital Markets
Unemployment in the 17-nation bloc rose to another record in May, a sign the economy is on the brink of recession. Jobless rate climbed to 11.1 per cent in May from 11 per cent the previous month, Eurostat data showed on Monday.
"The [unemployment] numbers ... indicate ongoing labour market weakness, with further deterioration highly likely in the second half of the year," said Ashley James, senior European economist at RBC Capital Markets.
The European Central Bank is widely expected to cut its benchmark rate on Thursday in attempt to invigorate the Eurozone's ailing economy.
"A rate cut by 25bp almost looks like a done deal," said Carsten Brzeski, senior economist at ING in Brussels, in research published on Monday.
"Circumstances are sufficiently negative to move to 0.5 per cent," said Julian Callow, European economist at Barclays. "It is clear that the economy does need significantly more stimulus."
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