Euro Zone Employment Logs Record Fall

The 16-country euro zone lost a record 1.22 million jobs in the first quarter of 2009, data showed on Monday, highlighting the depth of recession and boding ill for any quick turnaround.

The number of employed fell 0.8 percent in the first three months against the previous quarter to 146.2 million, pulled down by job losses in Greece and Spain, the European Union statistics office, Eurostat, said.

Employment during the first quarter fell 1.2 percent year-on-year, also the deepest annual drop since measurements started in 1995.

Eurostat revised down its quarterly employment figure for the last three months of 2008 to a drop of 0.4 percent from the previously reported 0.3 percent decline.

As the global credit crunch rages, factories are closing and laying off workers, despite hundreds of billions of euros in government funds spent on stimulating the economy.

The euro zone's economic output shrank by a record 2.5 percent in the first quarter compared with the previous three months, although many economists believe falls in subsequent quarters will not be as deep.

The employment figures underscore weakness in consumer demand, key to lifting Europe from its worst recession since World War Two.

The steepest quarterly falls in employment were recorded in Spain with 3.1 percent, Slovakia at 1.9 percent and Greece with 1.8 percent.

In Germany, the euro zone's biggest economy, employment decreased by 0.3 percent.

Earlier in June, Eurostat said euro zone unemployment jumped to 9.2 percent in April, its highest level in nearly 10 years.

By comparison, the unemployment rate was 9.4 percent in May in the United States and 5 percent in April in Japan.

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