Germany Faces Unexpected Rise in Unemployment Amidst Economic Struggles

Germany's unemployment rate increased by 18,000 in July, surpassing expectations. The Federal Labour Office attributes the rise to weak economic performance. Job openings also declined significantly compared to last year. The nation's economy continues to grapple with high energy costs, weak global demand, and record high interest rates.

The number of people out of work in Germany rose more than expected in July, according to data from the Federal Labour Office on Wednesday. The unemployed population increased by 18,000 in seasonally adjusted terms, higher than the 15,000 rise anticipated by analysts polled by Reuters.

'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.' There were 703,000 job openings in July, 69,000 fewer than a year ago, the Federal Labour Office reported.

Germany's economy, which was the worst-performing major economy last year, has struggled to regain footing due to high energy costs, weak global demand, and record high interest rates. The situation remains bleak as the economy unexpectedly contracted in the second quarter after narrowly avoiding a recession earlier this year, according to the statistics office.

(With inputs from agencies.)