This is an indication of the deteriorated economy. Government is also trying to control the crises, which are caused by huge debt. The European Statistics office reported that the employment rate is 11.5 percent in the month of August. According to estimates, 18.49 people in September were not working due to unemployment followed by 146,000 unemployed people in august. The rate of unemployment has reached its highest point in these three months. The unemployment rate in Euro zone was increasing slowly when the economy of the zone was trying to reduce financial and debt crises. At the same time, there is also a decrease in unemployment rate up to 7.8 percent in United States.
According to many economists, the unemployment rate will increase further in the next few months. Five countries are already facing the curse of recession in the euro zone. These countries include Portugal, Italy, Cyprus, Spain and Greece. It is also expected that soon many other countries of Euro zone will join these countries. In the mid of November, it was confirmed by the officials that after two phases of negative growth, the Euro zone is under recession. Survey also showed that business firms are not hiring new people for job. This has also played a crucial role in increasing the unemployment rate and put further pressure on the people to run a house financially has increased.
It has become difficult for the Euro zone government to deal with financial and debt crises due to increase in unemployment rate and the recession. Owing to these two problems, government is bound to give advantage to jobless people so that they can survive and in turn, government has to charge them less tax. During this precarious situation, economic instability in these countries has also increased. In Euro zone, Spain is at the top in having the highest unemployment rate up to 25.8 percent in Euro zone. Spain is under a complete phase of economic depression and the coming year will be the sixth year for Spain to enter in the recession.
Due to unemployment among youth, the countries in Euro zone are at high risk of crime. Moreover, it can cause social and economic instability in the Euro countries It has also led to the increase of the number of political parties with extremism and parties with aims to separate regions are also increasing in Spain.