Media365
Germany’s labour market weakened further in July, with the number of unemployed people rising slightly more than expected and edging closer to the politically significant three million mark, according to official data released on Friday.
Seasonally adjusted figures from Germany’s Federal Employment Agency showed that the number of unemployed increased by 6,000 to 2.99 million in July. Economists surveyed by Reuters had forecast an increase of 5,000.
The seasonally adjusted unemployment rate rose to 6.4 per cent in July from 6.3 per cent in June, reflecting continued softness in Europe’s largest economy.
“The weak trend observed in the labour market over recent months is continuing,” said Daniel Terzenbach, a senior official at Germany’s labour office.
In unadjusted terms, the total number of unemployed crossed the three million mark during July.
Terzenbach said both unemployment and underemployment increased noticeably during the month, mainly due to seasonal factors.
The latest labour market data comes as Germany faces renewed economic headwinds. Inflation accelerated to 2.8 per cent year-on-year in July from 2.4 per cent in June, driven by higher energy prices linked to the Iran conflict.
Despite Germany’s economy expanding more than expected in the second quarter, economists remain cautious as renewed geopolitical tensions between Iran and the United States threaten to keep energy prices elevated, potentially weighing on business investment and consumer spending.
Labour demand also remained subdued. The Federal Employment Agency reported 653,000 registered job vacancies in July, an increase of 25,000 compared with the same month last year, though hiring momentum remains weak.
The latest figures suggest Germany’s labour market continues to feel the impact of economic uncertainty, with employment conditions remaining under pressure despite stronger-than-expected GDP growth earlier in the year.
