Germany's Job Market in Crisis: Unemployment Rises Amid Economic Slowdown

Germany's unemployment rate rose slightly in November, with 7,000 more people out of work, surpassing expectations. The seasonally adjusted job rate stayed at 6.1% amid economic challenges. Job openings decreased, indicating reduced labor demand, while experts predict continued economic pressure and rising unemployment into next year.

Germany's labor market faced a minor increase in unemployment in November, as figures from the federal labor office revealed a rise of 7,000 jobless individuals, contrary to predictions of a 20,000 increase. The jobless rate held steady at 6.1%, indicating a stagnant labor market amid ongoing economic struggles.

The decline in available positions, with 668,000 job openings reported, reflects a drop of 65,000 compared to the previous year, signifying waning demand. Claus Vistesen from Pantheon Macroeconomics emphasized the impact of subdued economic growth on the labor sector, forecasting Germany's continued underperformance among the G7 nations.

Experts like Martin Mueller anticipate further unemployment growth due to both economic uncertainty and skilled labor shortages. Companies are becoming cautious about hiring, with manufacturing firms notably considering workforce reductions. As economic projections show little improvement, consumer confidence is likely to be adversely affected.

(With inputs from agencies.)