Germany’s seasonally adjusted unemployment rate rose to 6 percent in June from 5.9 percent in May. The number of unemployed individuals in Germany rose more than expected in June by 19,000, signaling that economic weakness is continuing to impact the labor market.
Unemployment in Germany rose to 2.727 million individuals in June, a monthly increase of 4,000. The data also reveals that there were 172,000 more jobless people compared to June 2023.
Unemployment in Germany traditionally falls in June due to seasonal effects. However, in recent years, that trend has reversed due to the COVID-19 pandemic and the admission of Ukrainian war refugees. Germany attributes this year’s increase mainly to economic factors.
In the eurozone as a whole, the rate of job creation eased during June, PMI data revealed earlier in the month. However, employment saw an increase for the 6th month in a row.
Despite posting a third successive monthly rise in business activity, employment and job creation in Germany remained weak. However, the rate of expansion was only marginal amid a decline in new orders. On the other hand, France saw a decline in output at the fastest pace since February, posting a decrease in output for the second month running. Meanwhile, the rest of the eurozone recorded a solid rise in activity, despite the rate of growth easing to a four-month low.
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