The unemployment rate rose slightly in Germany in June, for the first time since December. A progression which comes in a context of persistent economic gloom within Europe’s largest economy.
It gained 0.1 point to 6.0%, according to seasonally adjusted data (CVS) published by the Employment Agency in a press release. The number of unemployed increased by 19,000, still in CVS data. In raw data, it is up by 4,000 to 2.727 million people.
Over one year, the number of unemployed rises by 172,000, according to the Employment Agency. “The weakness of the labor market continues. Unemployment and underemployment increased significantly in June,” summarized Andrea Nahles, president of the Federal Employment Agency, in the press release. The unemployment rate is changing little due to an increase in the active population due to immigration and labor 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.
This article was published automatically. Sources: ats / awp / afp
