Germany’s July unemployment surges past forecasts

Germany’s unemployment rose more than usual in July, with a seasonally adjusted increase of 18,000 compared to the previous month. The unemployment rate remained steady at 6 per cent, according to latest data released by the German Federal Labour Agency (BA) on Wednesday.

Compared to July of last year, the number of unemployed is 192,000 higher. The unemployment rate rose by 0.2 percentage points to 6.0 percent. Compared to the same month last year, the rate increased by 0.3 percentage points. The unemployment rate calculated by the Federal Statistical Office according to the ILO employment concept was 3.4 percent in June.

Weak economic conditions and a decline in investment contributed to the rise, as Germany’s economy contracted by 0.1 per cent in the second quarter.

Despite ongoing economic challenges, including a stagnating manufacturing sector and persistent inflation, the labour market has shown resilience.

Companies are retaining workers amid a shortage of skilled staff, but addressing the structural issues of a shrinking workforce is seen as crucial for sustainable economic recovery.

Attribution: Bloomberg & Bundesagentur für Arbeit (German Federal Labour Agency)