Germany: Unemployment remains stable in October, at 5.5%


Germany’s jobless rate remained stable in October, despite inflation and the specter of recession looming over the euro zone’s largest economy, the German Employment Agency said in a statement on Wednesday. The indicator shows 5.5% in data corrected for seasonal variables (CVS), the same level as in September, she detailed. The number of unemployed meanwhile increased by 8,000 over one month, still in CVS data. In raw data, this figure fell by 43,000 over a month, to reach 2.44 million, added the organization. “Overall, the labor market remains robust, and employment continues to growEmployment Agency President Andrea Nahles said in a statement.

Unemployment in Germany, which stood at 5.0% at the start of the year, soared from June as Ukrainian refugees flooded into the job market. Since August, the indicator has stabilized at 5.0%. But the current economic difficulties of the German economy, hit hard by the energy crisis, could have an effect, in the long term, on the labor market. “The consequences of economic uncertainties are visible: many companies are reducing their demand for new staff and preparing to resort to partial unemployment“, she assures.

Germany has not been supplied with Russian gas since September and must therefore source elsewhere at much higher prices, which is fueling inflation. The rise in prices is reaching historic highs in the country, with an increase of 10.4% in October. This phenomenon weighs on industry, the engine of the first economy in the euro zone and will bring Germany into recession in 2023, according to government forecasts. To relieve its households and businesses, Berlin announced at the end of September the release of 200 billion to cap prices.

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