Europe is growing poorer

For some time already Europe has had to get used to acknowledge the "numbers" of the crisis. Reports and statistics analysing the present situation, envisaging future scenarios have become a part of everyday life. Speaking of unemployment, also the recent figures issued by Eurostat are not at all encouraging when compared to the previous years. A record number of employed people in EU27 -11.4%, the highest figure since the adoption of the common currency – was registered in the month of August. In fact, the survey points out that the state of affairs in EU27 has continued being serious in the second trimester of 2012 with an increase in unemployment rates as a whole, despite significant differences across Member States. But a data that is cause of particular concern, related to the job market, is the deterioration of the financial situation of families and the increase of child poverty.Comparison between States. According to Eurostat estimates on euro area employment rate grew from 11.3% to 11.4%. Skyrocketing figures also for EU27, whose unemployment rate was 10.5%. Unemployment rate in the 17 countries that have adopted the euro currency a year ago was 10.2%, while it amounted to 9.7% in EU27. These figures represent 25 million 446 unemployed people in Europe, 18 million of whom in euro area countries. Lower unemployment rates were recorded in Austria (4.5%), Luxembourg (5.2%), The Netherlands (5.3%) and Germany (5.5%), while Greece and Spain are marked by worrying figures, that confirm those of countries with highest levels of unemployment (respectively 25.1% and 24.4%). Act now. "Unacceptable" this is the definition of the situation according to the spokesperson of the EU Commission for Social Affairs László Andor, who urged member States to "urgently adopt" the EU growth and employment recommendations. Figures on employment in Europe, at social level are reason for concern at various levels and for this clear warnings were launched. As underlined by Commissioner László Andor, "we’re facing a true social emergency". All the more serious if set against the global background: in August 2012 the unemployment rate was 8.1% in the United States and 4.1% in Japan. Italy is the country with the highest number of jobless people ensuing major company restructuring involving the loss of 33,802 people between June and August. Italy ranks first also among the people that ceased looking for a job (11%of unemployed) and in the fall of production rates: – 2.1%, worse than Hungary (1.9%) and Great Britain (1.4%). The alarm thus involves families’ difficulties: "Italy, states the report, registered the worst decline in family income, followed by Greece and Cyprus". The youth. The alarm bell of youth unemployment rings across Europe, with surging rates since the month of July. In August 2012, the youth unemployment rate was 22.7% in the EU27 and 22.8% in the euro area. Despite significant differences across member states, youth unemployment surged more than unemployment rate as a whole. Eurostat findings show that Greece holds the worst record, with 55.4% unemployed youth (45.8% in August 2011) followed by Spain with 52.9% compared to 47.2% in August 2011. 34.5% of Italian youths are unemployed, 35.9% in Portugal, followed by France with 25,2%. Future perspectives leave no space for optimism, the main risk being increasing rates of young people without a job. This situation is coupled by the NEET phenomenon "not in employment, education or training", young people aged 15-24, without education nor a job and who aren’t even seeking one. That’s why the EU "can’t afford decreasing the budget" of the European Social Fund (a question addressed over the past days), given the "concrete risk" that it may hinder the youth and social cohesion between States, as pointed out by Andor after the last EU Council with EU27 Council ministers. Poverty risk. In addition to the young, weak brackets and children are paying the highest price. The report shows that the situation of child poverty in Europe involves an increasing number of families, owing to low income rates and insufficient state subsidies to families with children. 10% of children in Denmark, Finland are at poverty-risk. The figures reach over 20% in Spain, Greece, Bulgaria, Portugal, Italy, Romania, Lithuania, Latvia, Poland and Luxembourg.