The unemployment rate within the Eurozone rose again in November, marking the fourth consecutive increase, according to Eurostat. The rate now stands at a record high of 11.8%.

In the 1990s the previous record of 11.0% was reached on several occasions, but never exceeded. This time the European labour market is on track to move past 12.0% in due course.

Of bigger concerns however, is the widening gap between core EU countries and those on the periphery. Unemployment in Greece (26.0% in September) and Spain (26.6% in November) is now more than 20% higher than in Austria (4.5% in November).

Tim Ohlenburg, senior economist at CEBR, says: “Picture a line of Greeks where one in four is without a job, compared with one in twenty Austrians. Meanwhile, the European Central Bank remains idle, leaving interest rates untouched and holding off from further monetary injections.

“In other words, the Eurozone is trundling further into recession, but neither states nor the central bank are taking action. Reform will have to be undertaken the long and painful way: falling wages in the periphery amid widespread unemployment, rising wages in the core thanks to a weak euro and loose monetary policy. The Eurozone faces a long and hard trek and it remains unclear if it can reach the summit intact.”