The eurozone unemployment rate rose to 8.9 percent in December from a revised 8.8 percent in November, data showed on Tuesday, confirming the region's chronic inability to create jobs despite modest growth. The jobless rate in the 12-nation single currency area has been stuck around this level since March 2003, and the European Union statistics agency estimated a preliminary 2004 jobless rate of 8.9 percent, the same as in 2003.
"Given the somewhat modest growth outlook at the moment and companies' continuing determination to keep their labour forces as tight as possible ... it seems unlikely employment across the Eurozone will pick up significantly for some months to come," said Howard Archer, analyst at Global Insight.
The result was in line with analysts' expectations.
Eurostat revised the eurozone jobless rate down to 8.8 percent in November and October from 8.9 percent. The jobless rates for June and July were also revised down to 8.8 percent.
Revisions were due to the arrival of data from Greece, a Eurostat official said. Previous data showed an 8-month streak of unchanged unemployment rates of 8.9 percent until November.
Eurostat estimated that 12.6 million people were without jobs in the eurozone and 19.0 million remained unemployed in the 25-nation European Union.
Analysts say rigid labour laws and industrial overregulation hampers job creation in many EU countries, keeping domestic demand in check and stifling economic growth.
The persistent failure of eurozone consumers to open up their wallets leaves the region's expansion dependent on exports and thus at the mercy of growth in other countries.
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