Fitch reports unemployment rates increasing in major developed economies
Date
8/25/2024 5:03:43 AM
(MENAFN) Fitch Ratings reported Friday that unemployment rates have been on the rise over the past six months across several major developed economies. The report highlighted increases in unemployment in the United States, the United Kingdom, Canada, Germany, Australia, and Switzerland. This trend marks a shift from previously lower rates and reflects broader labor market adjustments in these economies.
In the United States, the unemployment rate climbed to 4.3 percent in July, up from 3.5 percent a year earlier. Similarly, in the United Kingdom, the rate rose to 4.2 percent in May, compared to 3.8 percent in November 2023. Canada's unemployment rate saw a notable increase as well, reaching 6.4 percent in July from 5 percent in January 2023. Germany experienced a rise to 3.4 percent in June from 2.9 percent in May 2023.
Australia's unemployment rate increased to 4.2 percent in July, up from 3.5 percent in June 2023. In Switzerland, the rate also went up to 2.5 percent in July from 2 percent in June 2023. These figures reflect a broader trend of rising unemployment across developed economies, suggesting a cooling of labor markets globally.
The report from Fitch Ratings also noted that central banks in advanced economies, including the European Central Bank, the Bank of England, the Swiss National Bank, and the Bank of Canada, have recently cut interest rates. US 10-year bond yields have also declined in anticipation of potential Federal Reserve rate cuts. While unemployment remains relatively low by historical standards, the easing labor market conditions are reducing wage inflation pressures, thereby supporting the case for continued interest rate cuts by central banks.
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