Thursday, April 4, 2013
Unusual headline, huh? I noticed some time back that there were tentative signs of the unemployment in the PIIGS countries stabilizing. This impression is a little more pronounced with a couple more months worth of data (through Feb except for Greece through Jan). There's no sign of this in the Europe-wide aggregates, so the picture seems to be that the core of western Europe is getting worse, while the periphery has stopped getting worse (though it's still in terrible shape).
Whether this can improve further is probably dependent on avoiding some new shock (or new act of gross mismanagement on the part of the European authorities), and in particular that everyone can shrug off what happened in Cyprus as a one-off.