Germany’s labour market shows signs of weakness as jobless numbers rise sharply above forecasts
Germany’s unemployment rose significantly more than expected in September, adding to signs that weakness in Europe’s largest economy is yet to translate into a meaningful improvement in the labour market.
The number of unemployed people increased by 12,000 in seasonally adjusted terms to 3.01 million, data from Germany’s Federal Employment Agency showed on Wednesday.
Economists polled by Reuters had expected the number of unemployed to rise by just 1,000. Despite the increase in unemployment, Germany’s seasonally adjusted unemployment rate remained unchanged at 6.4 per cent.
The unadjusted number of unemployed people, meanwhile, fell slightly below the 3 million mark in September after remaining above that level for the previous two months.
Germany’s labour market typically sees a seasonal improvement in September as the summer holiday period ends and hiring picks up. However, the recovery has been slower this year.
“The economic improvement is not yet reaching the labour market,” Federal Employment Agency chief Andrea Nahles said in a statement.
The latest figures highlight the continued weakness in Germany’s economy, with businesses remaining cautious about hiring despite some signs of improvement in broader economic conditions.
The September data also suggest that a recovery in economic activity has yet to generate stronger employment growth, keeping pressure on the German labour market.