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The jobless rate in the eurozone remained stuck at 9.0 percent in May from April as the economic recovery failed to generate new jobs, data from the European Union statistics office showed on Thursday.
Eurostat estimated that 12.7 million people remained jobless in May in the 12-nation bloc while 19.3 million were unemployed in the 25-nation EU.
The jobless rate in the EU eased to 9.0 percent from 9.1 percent in April and May 2003.
The data was in line with expectations as economists polled by Reuters had on average expected the eurozone unemployment rate to remain steady at 9.0 percent.
In May 2003 the eurozone jobless rate was 8.9 percent.
Economists had expected the eurozone labour market to lag the economic recovery as firms continue to rebuild profit margins during the early phases of economic expansion.
The lack of new jobs will continue to keep household spending in check, but there are signs that the mood of consumers is starting to pick up.
A survey by the European Commission on Wednesday showed a slight improvement in consumer confidence in June on the back of growing optimism over the future financial situation, the general future economic situation and future unemployment.
"Employment expectations in the EU showed a quite positive picture," the Commission said on Wednesday.
The unemployment rate in the EU and eurozone remains well above that of the United States and Japan where May jobless rates were 5.6 percent and 4.6 percent respectively.
Compared with May, 2003, 12 of the 25 EU states recorded higher unemployment rates, 11 a decline and in two states the rates were steady, Eurostat said.
The lowest jobless rates in May were seen in Cyprus, Luxembourg and Austria, all with 4.2 percent. The highest rates were seen in EU newcomers with Poland recording an unemployment rate of 18.9 percent, followed by Slovakia with 16.4 percent.

Copyright Reuters, 2004

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