Rising unemployment in the eurozone is posing serious risks to economic rebound in the currency union.

That is according to the European commissioner for economic and monetary affairs, Joaquin Almunia, who identified the combination of weak labor and credit markets as the biggest threat to growth in the 16 members of the eurozone.

Speaking at an economic conference in Brussels, the Spanish politician suggested that unemployment in the eurozone will climb to an average of between 11 per cent and 12 per cent by 2011 - even as economic recovery is achieved, the Wall Street Journal reported.

Mr Almunia claimed that this problem would be exacerbated if state support is withdrawn too soon.

"We can go backwards in the financial crisis," he told the newspaper.

The number of persons employed in the 16-nation euro area declined by 1.8 per cent between the second quarters of 2008 and 2009, according to the data agency Eurostat.

This is equivalent to 145.5 million individuals and caused by reducing working hours.