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German and Spanish jobless data highlight two-speed eurozone

The starkly contrasting economic trajectories of eurozone countries were highlighted yesterday as Germany reported unemployment at 20-year lows while Spanish jobless figures rose for the fifth consecutive month.

The number of Spanish jobseekers rose to 4.42m, while Germany’s jobless count fell to 2.976m. Another measure, based on household surveys, puts Spanish seasonally adjusted unemployment at 5.4m, almost 23 per cent of the workforce. The comparable German figure fell to 6.8 per cent in December.

The divergence of eurozone economies has been a source of tension since the sovereign debt crisis struck, with northern countries recording much stronger growth than their southern neighbours, whose less competitive economies have been further burdened by austerity measures to correct unsustainable fiscal policies.

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