German unemployment rises above estimates in September

While markets had expected 8,000 more unemployed, Germany’s unemployment rises by 14,000 in September, reaching 2.98M due to weak manufacturing sector

By Bahattin Gonultas and Emir Yildirim

BERLIN (AA) - Hampered by a struggling labor market in a persistently weakening economy, unemployment in Germany soared by 14,000 in September to 2.98 million, new figures from the country’s Federal Employment Agency said Tuesday.

The market had expected the number of unemployed in Germany to rise in September by only 8,000.

The seasonally adjusted unemployment rate in Germany remained unchanged at 6.3% in September, while unfilled positions at companies fell 66,000 versus last month, totaling 630,000.

Meanwhile, the German economy shrank 0.1% in the second quarter after 0.3% growth in the first quarter, showing that the economy remains fragile as its manufacturing sector continues to be weak.

Rising interest rates, cyclical risks, and structural changes pose risks to the German economy.

The government had promised to lift the country out of stagnation with a sharp rise in infrastructure and defense spending, but the expected positive impact of these measures is taking longer than expected.

Kaynak:

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