Luxembourgh Times
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Unemployment steady in eurozone despite gloomy outlook

Luxembourg's unemployment rate stood at 4.5% in September - marginally up from previous month

Luxembourg's unemployment rate stood at 4.5% in September

Luxembourg's unemployment rate stood at 4.5% in September © Photo credit: Gerry Huberty

Unemployment in the European Union held steady in September, data showed on Thursday, despite the gloomy economic outlook.

The unemployment rate stood at 6.6% in the club of euro countries - which includes Luxembourg - down by 0.1 percentage points on the month, and 1.3 points lower than the year before, the EU's Luxembourg-based statistics agency Eurostat said in a press release.

Luxembourg's unemployment rate was marginally up in September compared to August, reaching 4.5% from 4.4%, the data showed. In the wider EU, the unemployment rate remained unchanged at 6% in September.

The news comes as the countries using the euro added 0.2% to their economies in the third quarter of the year, Eurostat said earlier this week.

But inflation reached a record 10.7% in the region in October, up from 9.9% the previous month. In Luxembourg, inflation was 8.8% in October, unchanged from September.

People walk in main street of Luxembourg city, Luxembourg, June 22, 2018.

People walk in main street of Luxembourg city, Luxembourg, June 22, 2018. © Photo credit: Shutterstock

While inflation holds steady in the Grand Duchy, the country still may be heading for a recession, according to national statistics agency Statec. Economic output dropped by 0.5% in the second quarter, with the industry and construction sectors dragging it down, Statec said last week.

However, the country's all-important finance industry, and especially the growing field of alternative investments, should be largely insulated from job losses even if other types of companies cut workers or close down.

Requirements for full and accurate reports to Luxembourg's financial regulator CSSF, tax authorities and others will not diminish even if business is less bubbly, industry insiders told Luxembourg Times this week, and neither will the red-hot need for compliance and risk specialists.