Euro Zone Jobless at 8-Year Low

The euro zone’s jobless rate fell in June to the lowest level in almost eight years, as accelerating economic growth encouraged companies to hire.

Unemployment fell to 9.1%, the lowest since July 1992, from 9.2% in May, European Union figures showed. While the rate is still more than twice as high as the U.S., it has steadily declined since peaking at 11.7% in 1997. Many analysts expect further declines in coming months.

“We expect the unemployment rate to be below 9% by year-end,” said Stephane Deo, an economist at Goldman Sachs. The pace of economic growth in the euro region is likely to reach 3.7% this year, the most in a decade, he said.

Phone and Internet companies have been among the most aggressive in their hiring. Manufacturers too have increased their payrolls, after the euro’s 8% decline against the dollar this year boosted exports.

Manufacturing in Germany, France and Italy, the euro zone’s three largest economies, expanded in July, a Reuters survey showed. The Italian government reported that orders placed with the nation’s manufacturers surged 17% in May from a year earlier.