The euro zone's unemployment rate fell further in May but the U.K.'s vote to leave the European Union (EU) and the knock-on effect it could have on demand, could upset the recovery.
Unemployment in the euro zone stood at 10.1 percent in May, according to the latest figures from Eurostat, the statistical office of the European Union, down from 10.2 percent in April.
The unemployment level in the 19-country single currency area was the lowest since July 2011, Eurostat said.
It estimated that 21.084 million men and women in the 28-country EU, of whom 16.2 million were in the euro area, were unemployed in May 2016.
The data came shortly after a survey showed that euro zone manufacturing growth was at a six-month high in June. Markit's final purchasing managers' index (PMI) rose to 52.8 last month, above a preliminary figure of 52.6) as "growth of both production and new orders accelerated to the fastest in the year so far," Markit said in a data release.
While the latest data shows that momentum in euro zone job growth and manufacturing activity is moving in the right direction, the British referendum last week on EU membership could damage the nascent recovery.