Wednesday, July 1, 2009

German Unemployment Rose in June

The number of unemployed people in the first European economy reached 3.495 million on a seasonally adjusted basis, a rise of 31,000 on May's number, official figures showed.
However, many economy analysts forecasted a bigger rise of about 45,000. According to the Federal Labour Office the jobless rate rose to 8.3% from 8.2% in May.

On an unadjusted basis, unemployment fell by 48,000 from the previous month.
Timo Klein from Global Insight comments the situation: "Employment has generally not fallen quite as fast as unemployment has been increasing, as firms aim to hold onto their existing workforce wherever possible."

As Germany prepares for general elections in September the data about unemployment rate had caused speculation prior to their release. These figures influenced European stock and currency markets. Experts continue warning that unemployment figures could top 4.1 million by the end of 2009, if the German economy follows predictions and contracts by more than 6 percent this year. There are global concerns that the economic crisis can become deeper as a jobs crisis by year's end.

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