Germany’s jobless rate held steady in September, near record lows, highlighting the ongoing strength of the labor market despite concerns about the state of Europe’s largest economy.
Unemployment Rate
The German adjusted unemployment rate stood at 5.7% in September, unchanged from August and July, according to data from the Federal Employment Agency. This is in line with expectations from economists polled by The Wall Street Journal.
Increase in Unemployed Individuals
On a seasonally adjusted basis, the number of unemployed people rose by 10,000 in September, following a revised increase of 20,000 in August. Economists had predicted a smaller rise of 15,000 jobless claimants.
Resilience of the German Job Market
The lower-than-expected rise in unemployment reflects the resilience of the German labor market, despite the challenges faced by the German economy.
Jobless Rate and Total
The unadjusted jobless rate also decreased slightly from 5.8% in August to 5.7% in September. The total number of jobless individuals fell from 2.70 million to 2.63 million on a month-to-month basis.
Decrease in Labor Demand
Demand for labor also decreased compared to the previous year, with the number of registered job vacancies at 779,000. This represents a decline of 113,000 vacancies compared to the same period in 2022.
Economic Outlook
In contrast to the strong labor market, the German economy experienced zero growth during the second quarter and is expected to face challenges due to slowing global demand for goods as well as the impact of high European Central Bank interest rates.