German Unemployment Unexpectedly Rises in Sign Economy Slowing

  • Joblessness rises 1,000 in September, first gain in 12 months
  • Nation’s unemployment rate remains at record-low of 6.1%

Are European Banks to Blame for a Slowing Germany?

German unemployment unexpectedly rose in September, in a sign of concern among businesses over an economic slowdown and the consequences of Britain’s decision to leave the European Union.

Key Points

  • Number of people out of work increased by seasonally adjusted 1,000 to 2.68 million (median forecast was for a decline of 5,000)
  • Jobless number rose for first time in a year
  • Unemployment rate held at 6.1 percent, lowest since reunification
  • Figures released by the Federal Labor Agency in Nuremberg, Germany

Big Picture

The surprise gain in the number of jobless adds to evidence that Europe’s largest economy may be losing its momentum. The Bundesbank this month toned down its outlook, saying it expected growth to slow in the third quarter, and a composite Purchasing Managers Index published Friday dropped to a 16-month low, with the services sector almost stagnating. European Central Bank President Mario Draghi has signaled that the country should use its “fiscal space” for stimulus.

Other Details

  • Number of people out of work rose by 5,000 in western Germany
  • Number of people out of work fell by 3,000 in eastern Germany
  • Labor agency says demand for workers remains high
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