Eurozone Recovery Hasn't Erased Social Costs of Last Year's Recession

The euro seemed to be well on its way to recovery on Monday morning as it vaulted toward an 11 month high against the dollar. The common currency, buoyed by renewed investor confidence in the region, traded at 1.3435 on Monday. The currency rocketed after news on Friday confirmed predictions that eurozone banks would repay more than expected of their European Central Bank loans. According to the

, eurozone banks are going to repay 137.16 billion euros of three year loans. The decision to pay the loans early shows the banks' mounting confidence as they move to wean themselves off of ECB funding. The recovery in the financial markets has given the common currency a much needed boost, but many worry that a strong currency doesn't mean a strong economy. Unemployment throughout the eurozone continues to soar, with countries in Southern Europe posting the worst numbers. Data last week showed that nearly 6 million people, or 26 percent of the population, were jobless in the fourth quarter. This incredible figure was topped only by Greece, which posted a jobless rate of 26.8 percent, a record high. Later this week, new unemployment data is due out with most predicting a significant rise.

reported that economists are predicting that unemployment across the region will have climbed to 11.9 percent, the highest rate of unemployment since governments started keeping record, in 1995. Predictions for Germany, however, are a bit more optimistic. Economists are forecasting unemployment in the eurozone powerhouse to remain constant at 6.9 percent in January.