Unemployment increased in Germany for the seventh consecutive month during October
October 31, 2012- Unemployment increased in Germany for the seventh consecutive month during October. The new data underscores the vulnerability of the biggest economy in Europe to the economic crisis in the euro zone.
The amount of Germans who are unemployed increased to 2.9 million during October, up about 20,000 from September. A poll of economists had predicted that rate would increase by just 10,000.
However, joblessness remains close to its lowest numbers since the reunification of Germany over 20 years ago. On Tuesday, the Labor Office information released showed the rate of unemployment was 6.9%, unchanged from September’s revised figure.
The rate in Germany is in contrast to the other high chronic unemployment rates suffered by the weaker members of the common currency zone like Spain, where the current unemployment rate is over 25% and 50% of young people do not have work.
The overall weak economic situation in the region has impacted Germany noticeably said one economist, however overall the jobs market in the country has remained strong and is solid.
The slowdown globally and the three year euro zone debt crisis have weighed on the readiness of companies to invest. Recent surveys show that business confidence in Germany is starting to sag, though very few economists believe a recession is on the horizon.
The Labor office in Germany announced that the unemployment numbers show the market is losing steam, but the lack of good qualified employees and a very strong labor demand in many sectors domestically, will make the situation much easier and quicker to recover from.
The economy in Germany was able to power through the sovereign debt crisis’ first two years in the euro zone. In 2011, it grew by 3%, but this year has steadily slowed to 0.5% during the first quarter and to 0.3% during the second quarter.
Angela Merkel, the German Chancellor, who faces election during 2013, expects the economy in Germany to grow this year by 0.8% and in 2013 by 1%.