Germany’s Jobless Rate Rises Amid Economic Concerns

Germany, Europe’s largest economy, is facing increased pressure on hiring as high interest rates and a stuttering economy take their toll. The country’s adjusted unemployment rate rose to 5.8% in October, up from 5.7% in September and August, according to data from the Federal Employment Agency.

Unemployment Numbers Exceed Expectations

In October, the number of unemployed people increased by more than expected, with a 30,000 rise on a seasonally adjusted basis. This followed a 12,000 increase in September. Economists had predicted a more modest 15,000 increase in jobless claimants.

Decrease in Labor Demand

The demand for labor has also decreased compared to the previous year, indicating a loosening job market. The number of registered job vacancies currently stands at 749,000, which is a significant decrease of 98,000 compared to the same period in 2022, as reported by the agency.

Economic Challenges Continue

Germany’s economy contracted by 0.1% in the third quarter of this year. The current outlook for the economy remains weak due to high European Central Bank interest rates and low global demand for goods, both of which are impacting the country’s key export market.