Rising Unemployment: Challenges for Germany's Largest Economy

The number of unemployed people in Germany increased by 17,000 in September, reaching 2.82 million in seasonally adjusted terms, according to the federal labour office. This rise exceeds the anticipated 12,000. The unemployment rate remains stable at 6.0%, with a notable decrease in job openings and rising economic uncertainty.

The number of people out of work in Germany rose more than expected in September, highlighting the challenges facing Europe's largest economy, according to federal labour office figures released on Friday. Unemployment increased by 17,000 in seasonally adjusted terms, bringing the total to 2.82 million.

The seasonally adjusted jobless rate held steady at 6.0%, although job openings fell significantly, with 65,000 fewer positions available compared to a year ago. Analysts had expected a rise of only 12,000 in unemployed figures, according to a Reuters poll.

Economic contractions and uncertainty are influencing company employment strategies, with potential further increases in unemployment expected this year. The Ifo Institute's employment barometer dropped to 94.0 points in September from 94.8 in August, while leading economists forecast the unemployment rate to edge higher to 6.0% from 5.7% in 2023, not expected to stabilize until 2026.

(With inputs from agencies.)