Germany’s jobless tally stayed above 3 million for a second month in August, underscoring the lingering weakness in Europe’s biggest economy even as the rise in seasonally adjusted unemployment came in slightly below expectations.
The number of unemployed people increased by 4,000 to 2.996 million on a seasonally adjusted basis, Germany’s Federal Employment Agency said on Friday. Economists polled by Reuters had expected a rise of 5,000.
The seasonally adjusted unemployment rate held steady at 6.4 per cent.
On an unadjusted basis, the number of unemployed people rose by 36,260 to 3.061 million in August, remaining above the 3-million threshold for a second consecutive month.
The increase partly reflects a seasonal pattern. German unemployment typically rises from July as the summer break affects hiring and employment.
But the seasonal effect comes against a backdrop of weak economic growth that has kept Germany’s labour market subdued.
“Even in August, the labour market shows little momentum beyond the usual seasonal patterns,” Andrea Nahles, head of Germany’s Labour Office, said in a statement.
She said the figures continued the subdued trend seen in recent months.
More from BusinessSigns of improvement
There are some indications that the pressure on Germany’s labour market could ease if the economy gains momentum.
A survey by the Ifo economic institute showed German companies planned fewer job cuts in August. Its business climate index also rose more than expected during the month, helped by stronger exports and industrial production.
The improvement in business sentiment comes after a prolonged period of weakness in Germany’s economy. A sustained recovery in economic activity could encourage companies to step up hiring.
Vacancies increase
The number of job openings also rose. Employers registered 656,000 vacancies with the labour office in August, 25,000 more than a year earlier.
The increase suggests that demand for workers remains in parts of the economy despite the broader slowdown.
For now, however, Germany’s labour market remains subdued. While unemployment has not deteriorated sharply, it is yet to show a clear and sustained recovery.
(With inputs from agencies.)
