- Raphael Brun-Aguerre, an economist at JP Morgan
Euro zone unemployment rose to the highest since 1998, a sign the economy has slipped into recession. Unemployment increased to 10.8 per cent, said the European statistical agency on Monday.
"We expect it to go higher, to reach 11 percent by the end of the year," said Raphael Brun-Aguerre, an economist at JP Morgan in London.
"You have public sector job cuts, income going down, weak consumption. The economic growth outlook is negative and is going to worsen unemployment."
"Unemployment is lagging economic developments and the situation on the labor market will likely remain difficult through 2012," said Jens Kramer, an economist at NordLB in Hanover, Germany.
"Domestic demand is hurt by the difficult labor market and tougher austerity measures. The first and second quarters will show a contraction followed by a slight recovery."
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