The unemployment rate in the 16 eurozone nations will stand at 10.7 percent in 2010 and climb to 10.9 percent in 2011, the European Commission forecast Tuesday.

"While the EU labour market has been more resilient to the recession than expected... an increase in labour shedding is expected in the coming quarters," the commission said in its autumn economic forecast.

"A gradual stabilisation in employment is likely towards the end of 2010 and into 2011 as the recovery takes hold," it said.