Unemployment rises more than usual in summer
It's common for unemployment to rise just before the summer break. However, this year's increase is higher than usual. Overall, the rate has risen by 0.2 percentage points. The weak economy is the main reason for this.
The number of unemployed people in Germany increased significantly in July due to the weak economy, more than is typical for the start of the summer break. The Federal Employment Agency (BA) reported 2.809 million unemployed people. This is 82,000 more than in June and 192,000 more than a year ago. The unemployment rate rose by 0.2 percentage points to 6.0 percent.
"The weak economic development is putting pressure on the labor market," said BA board member Daniel Terzenbach. After adjusting for seasonal effects, the number of unemployed people increased by 18,000 compared to the previous month, according to the BA. In July, more short-time work was reported than in the previous month, but the use of short-time work benefits has been decreasing, with 211,000 people receiving them in May, compared to 226,000 in April and 213,000 in March.
In July, 903,000 people received unemployment benefits, which is 105,000 more than a year ago. The number of employable citizens receiving benefits was 4.021 million in July, which is 75,000 more than a year ago.
The current economic conditions in Europe, with the aim of achieving an Economic and Monetary Union, might be affected by Germany's rising unemployment rate. The challenges in Germany's labor market could potentially impact the overall stability of the Economic and Monetary Union.
