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The euro area unemployment rate remained unchanged at an elevated level in August as businesses generated fewer jobs amid weak economic growth.The jobless rate held steady at double-digit 11 percent in August, data from Eurostat showed Wednesday. The figure was expected to remain at July's originally estimated rate of 10.9 percent.The number of people out of work decreased by 1,000 from July to 17.603 million. From a year ago, unemployment fell by 892,000.However, the youth unemployment rate rose marginally to 22.3 percent from 22.2 percent in July.For the months ahead, the momentum in the job market will be dictated by the recovering European periphery as Germany employment gains are smaller now that its unemployment rate has fallen to very low levels, Bert Colijn at ING Bank NV said.Jack Allen, an economist at Capital Economics, said the labor market recovery is likely to remain slow. He noted that data from Germany and also surveys of employment intentions point to slow employment growth over the rest of the year.Data from the Federal Labor Agency today showed that the German unemployment increased unexpectedly by 2,000 in September from August, when it fell by 6,000. It was forecast to fall by 5,000.The jobless rate stood steady at 6.4 percent in September as expected by economists. It has been at 6.4 percent since April.Nonetheless, Germany has the lowest unemployment rate for August, with 4.5 percent. Greece continue to log the highest rate among the member countries, at 25.2 percent in June.In Italy, the unemployment rate fell to its lowest level since February 2013, the statistical office Istat revealed today. The jobless rate fell to 11.9 percent in August from 12 percent in July.Amid an unexpected increase in unemployment, retail sales of the largest Eurozone economy decreased in August signaling weak consumer spending. Sales fell 0.4 percent, in contrast to expectations for a 0.2 percent rise.
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