The unemployment rate in Germany rose slightly in June, for the first time since December. The increase comes amid continued economic gloom in Europe’s largest economy.
It gained 0.1 points to 6.0%, according to seasonally adjusted data (SA) published by the Employment Agency in a press release. The number of unemployed increased by 19,000, still in SA data. In raw data, it increased by 4,000 to 2.727 million people.
The number of unemployed has increased by 172,000 over the past year, according to the Employment Agency. “The weakness of the labour market continues. Unemployment and underemployment increased significantly in June,” Andrea Nahles, President of the Federal Employment Agency, summarised in the press release. The unemployment rate has changed little due to an increase in the working population due to immigration and labour shortages in certain sectors.
But the German economy has remained sluggish for several months, while its industry suffers from a multifaceted crisis, between high energy costs, weak domestic demand, and difficulties in international trade. The increase in the cost of credit and political uncertainty, against a backdrop of internal divisions in the government between the Social Democrats, the Greens and the liberals of the FDP on budgetary policy, are slowing down investments.
A slow recovery has certainly been announced since the start of the second quarter, thanks to an increase in consumption, exports and the easing of the ECB’s monetary policy. But a series of indicators now cast doubt on its imminence. Expected to rise, business morale and consumer morale actually fell slightly in June in Germany.
The rebound for this year looks very weak in any case. Berlin expects only 0.3% growth. This is much less than Brussels’ forecasts for the euro zone, of 0.8% this year then 1.4% next year.
ats, awp, afp
