The Eurozone Unemployment Rate Continues Dropping

The unemployment rate in the Eurozone dropped for a third consecutive month in January, reaching 10.3%. This is its lowest rate since 2011.

Eurostat, the EU's statistical agency, said the jobless rate in the 19-country eurozone declined to 10.3% in January from 10.4% in December.

The number of people unemployed in the eurozone fell by 105,000 to 16.65 million.

The eurozone's jobless rate hit a high of 12.1% during the first half of 2013.

In the 28 member European Union the unemployment rate fell to 8.9%. That was down from 9% in December and the lowest rate recorded since May 2009.

The lowest unemployment rate in the eurozone was in Germany at 4.3%, while the highest rates were in Spain, at 20.5%, and Greece, at 24.6%.

According to Markit's survey of purchasing managers for eurozone manufacturers on Tuesday activity expanded at its weakest pace for a year last month as deep price cuts failed to boost slowing order growth.

Markit's manufacturing PMI for the eurozone dropped to 51.2 from January's 52.3.

Chris Williamson, Markit's chief economist said: "Concerns are growing that the region is facing yet another year of sluggish growth in 2016, or even another downturn. Lacklustre domestic demand is being compounded by a worsening global picture."

This couldslow the decline in unemployment as businesses become more cautious about taking on new staff.