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European Union unemployment rates fell dramatically in 2017 according to the latest figures, hitting 7.3 per cent at the end of the year – the lowest since October 2008, when the global credit crisis erupted.

 

There are now just 18 million people unemployed in the EU28 nations, a fall of more than 2 million since the end of 2016, with the Czech Republic (2.5 per cent), Germany (3.6 per cent) and the UK (4.3 per cent) among the best performing economies for jobs.

 

In Spain, unemployment fell by 7.8 per cent in 2017 according to the country’s labour ministry, with 290,000 fewer people out of work than in 2016. ‘We are recovering more than 70 per cent of jobs lost during the biggest crisis Spain experienced in decades,’ said Prime Minister Mariano Rajoy.

 

And in the UK, there are now 32.2 million people in work, meaning a 42-year unemployment low of 4.3 per cent and the highest vacancy rate (at 810,000) in 17 years. “Today’s job numbers once again strongly suggest that the UK is on a firmer footing than many had anticipated following the EU referendum vote,” said James Athey, senior investment manager at Aberdeen Standard Investments.

 

The positive figures result from the spread of temporary contracts, which allow employers greater flexibility, together with the benefits of digital technologies, which mean both employers and workers can identify opportunities more quickly. Senior Bank of England official Michael Saunders predicts that the UK unemployment rate could fall below 4 per cent in 2018 as the country’s economy continues to grow.

 

The pound strengthened in response to the jobs data, while economists believe that gradual earnings growth could lead to an interest rate rise later in 2018.