The Eurozone looks to be in trouble again as unemployment across the area hits record highs. Across the Euro zone the numbers of jobless reached 10.9% (the highest since the Euro was created in 1999) which means around 17.5 million are now looking for work.

The number of Germans out of work is now at 2.87 million (around 6.9%) and Italian figures were the highest for a decade at almost 9.8%. Spain reports 5.6 million jobless, a record rate of 24.4% which confirms it as having the highest unemployment rate in the European Union (Cork Monkey thinks this is likely to get worse throughout 2012).

With these figures showing record numbers were reached in March much of the smart thinking is that this may be the impact of the various European governments well publicised spending cuts, designed to control deficits and control their economies, trickling through to the main economy and affecting the population in fairly predictable ways.

No light at the end of the tunnel

Now Spain and Italy are both in recession and have seen borrowing costs rise further, raising the prospect that they may need help or even bailouts from their financially stretched neighbours. In addition the future for Greece, Portugal and Ireland still looks grim and outside the Euro zone there are some signs the UK could also be entering recession.

To rub salt into these wounds a recent survey of euro zone manufacturing revealed further decline is inevitable as new orders fell through the floor for the 11th month in row.

But the sun rises in the East

The gap in manufacturing is being filled by China, India and others, who are looking to play a larger part in the world economy going forward. Their calls for non western trading blocks and rivals to the IMF the World Bank and other global institutions could further marginalise Europe who would become a significant but not quite so important a player on the world stage.

Cork Monkey wonders if European politicians have got their strategy for dealing with the efffects of the global financial wrong and its austerity measures, that have reduced spending, have been at the expense of their economic growth.