BERLIN (Reuters) – The number of unemployed people in Germany increased more than expected in September, according to the latest figures from the Federal Labor Office published on Friday.
The number of unemployed rose by a seasonally adjusted 17,000 to a total of 2.82 million, while analysts polled by Reuters had expected a rise of just 12,000.
The seasonally adjusted unemployment rate remained stable at 6.0%.
The Federal Labor Office counted 696,000 job offers in September, or 65,000 fewer than a year ago.
The German economy, which contracted by 0.1% in the second quarter, could, according to economists, contract again in the third quarter, thus plunging Europe’s largest economy into recession, defined by two consecutive quarters of contraction.
Amid economic uncertainty, German companies are becoming more careful in planning their personnel, German research institute Ifo said on Friday.
The Ifo employment barometer fell to 94.0 points in September, compared to 94.8 points in August.
“The structural problems of the German economy are gradually leaving their mark on the labor market,” said Klaus Wohlrabe, head of surveys at Ifo, adding that companies were considering job cuts more frequently.
The previously resilient German labor market is beginning to feel the impact of the weak economy. According to forecasts from the main economic institutes published on Thursday, the unemployment rate is expected to increase this year to reach 6.0%, compared to 5.7% in 2023, a level which is not expected to be reached again before 2026.
(Report by Maria Martinez and Holger Hansen, written by Miranda Murray, by Etienne Breban, edited by Augustin Turpin)
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