Number of unemployed rises unexpectedly in June
After an increase of 25,000 in unemployment numbers in May, economists predict stability in June. However, the seasonally adjusted quote continues to rise and noticeably weakens the labor market, warns the head of the Federal Employment Agency, Andrea Nahles.
Unemployment in Germany has increased more than expected in June. According to the Federal Employment Agency (BA), the seasonally adjusted unemployment number rose by 19,000 compared to the previous month, following an increase of 25,000 in May. The unemployment rate therefore rose to 6.0% (May: 5.9%). Economists had predicted an increase of only 10,000 and a stable rate of 5.9%.
Ignoring seasonal factors, the number of unemployed rose by 4,000 to a total of 2.727 million. The unemployment rate remained at 5.8%. "The labor market weakness continues," explained BA chairman Andrea Nahles at the presentation of the report. Unemployment and underemployment have seasonally adjusted increased, companies are still reluctant in their search for new personnel.
Underemployment, which also takes into account changes in labor market policy and short-term unemployment, rose seasonally adjusted by 16,000 (plus 15,000) compared to the previous month. It affected 3.546 million people. This was 142,000 more than a year ago.
According to the BA, companies reported 42,000 cases of short-time work due to economic conditions between June 1 and 24. Current data on actual usage are available up to April. Preliminary calculated data show that in this month, short-time work benefits were paid to 223,000 (March: 219,000) employees.
The Federal Employment Agency's chairman, Andrea Nahles, expresses concerns about the labor market, citing the continuous rise in the seasonally adjusted unemployment quote, which could potentially have an impact on the economy. Despite economists predicting stability in June, the Federal Employment Agency reports an increase of 19,000 in unemployment numbers in June, further fuelling these concerns.
