According the Nuremberg Federal Labour Agency, in November German unemployment rose to 2.94 million. That’s a seasonally adjusted jump of 5,000 and an eighth consecutive month of increasing unemployment for the largest economy in the Eurozone.
The data also showed that the adjusted jobless rate retained its previous level of 6.9 per cent.
An economist with HSBC Trinkhaus & Burkhardt commented: ‘The economic slowdown in the euro area is now also hitting Germany. This has put an end to the previous upward momentum in the labour market with companies being much more cautious about new investments.’
Similarly, Deutsche Postbank AG economist Heinrich Bayer asserted: ‘We have seen a change of trend in the labour market in the last couple of months. With growth rates slowing over the whole year and negative growth expected for the final quarter, the labour market won’t be gaining momentum in the near future.’
Although this latest result adds to fears that the German economy may stagnate in the fourth quarter it was better than forecast. Economists participating in a Bloomberg News survey estimated that the figure would increase by 16,000. The German jobless rate also continues to hover close to a twenty-year low whilst German business confidence experienced its first increase for eight-months in November.
Some industry experts, like Dekabank economist Andreas Scheuerle, remain hopeful: ‘What is happening in the German labour market is not a tragedy. Companies may be terminating contracts of temporary workers and reducing production and investments as demand has weakened, but rising business sentiment can give us hope’.
As of 9:50 am
The Pound to Euro exchange rate is currently trading at 1.2342
The Pound to US Dollar exchange rate is currently trading at 1.6027
The Pound to Australian Dollar exchange rate is currently trading at 1.5312
The Euro to US Dollar exchange rate is currently trading at 1.2985
The Euro to Pound exchange rate is currently trading at 0.8102
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