"In particular, higher unemployment lowers the ability of workers or unions to negotiate big wage increases -- and with a time lag between rising unemployment and wages, this downward pressure on inflation may continue for a long time to come."
"Spain had Europe's highest unemployment rate in June at 18.1 percent, followed by Baltic nations Latvia at 17.2 percent and Estonia at 17 percent. A third of Spanish under-25s can't find a job, it said.
Jobs are disappearing in all EU nations, Eurostat said, but Germany has seen the smallest rate of increase in its employment rate over the year, growing from 7.3 percent to 7.7 percent.
"Expect unemployment to rise further well into 2010," said Jorg Radeke, economist at the Centre for Economic and Business Research."