- Wednesday, October 16, 2024
The jobless rate in Germany unexpectedly decreased in July, indicating a tight labor market in Europe's largest economy.
According to data from the Federal Employment Agency, the adjusted unemployment rate in Germany stood at 5.6% in July, down from the 5.7% reported in June. Economists predicted that the rate would remain unchanged.
In July, the number of unemployed individuals decreased by 4,000 on a seasonally adjusted basis, following an increase of 30,000 in June. Economists had anticipated a further 20,000 increase in jobless claimants.
Furthermore, there was an increase in labor demand compared to the previous month, as registered vacancies rose to 772,358 from 769,493 in June. Although vacancies fell compared to the same period last year, the rate of decline reduced since June.
The decline in unemployment suggests that salaries may remain high in Germany in the upcoming months. Economists consider wage growth as a significant factor contributing to core inflation, which has remained persistently high in the eurozone despite repeated interest-rate hikes by the European Central Bank.
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