The latest unemployment figures published by Eurostat confirm the improvement in the labour market. In August, the unemployment rate in the eurozone was only 7.5%, a figure largely in line with those prevailing at the end of 2019.
The gradual normalization of economic activity thus allows a return to the normal of the labour market. But, indeed, the efforts made by the authorities to prevent unemployment from soaring have been notorious: thanks to a whole range of temporary unemployment measures and other aid to enterprises, the peak of the unemployment rate has hardly exceeded 8,6% during the summer and then quickly came down afterwards, as the strict confines of the first few months of the pandemic gave way to fewer restrictions, and that the vaccination campaign allowed the return to a more normal economic activity.
These support measures have also enabled households not to dip into their savings to cope with the crisis, which now leaves them considerable room to consume and invest. This is why the President of the European Central Bank, Christine Lagarde, urges them to do so. But, whatever the authorities do, the best support that can benefit the economy remains that of household spending.
With the gradual end of these support measures, the unemployment rate can rise here and there. But fundamentally, the economy remains on a sound wave of growth and many sectors are short-handed. The labour market should therefore remain dynamic, supporting the European recovery. Consequently, we continue to invest a small portion of our portfolios in eurozone equities.