German unemployment rises more than expected in July

31st Jul 2024 10:01

(Sharecast News) - German unemployment rose more than expected in July, according to the Bundesagentur für Arbeit, as Germany's economy continues to struggle to recover from heightened energy costs, weak global orders and all-time high interest rates.

Germany's seasonally adjusted jobless rate stood at 6% in July, the highest reading seen since May 2021, in line with market estimates, while the number of unemployed people rose by 18,000 to 2.8m in July, marking the 19th month of rising unemployment in a row.

Economists were expecting a month-on-month increase of 15,000.

"The weak economic development is weighing on the labour market," said the labour office's Daniel Terzenbach. "At the beginning of the summer break, unemployment and underemployment rose more sharply than usual."

Reporting by Iain Gilbert at Sharecast.com