In yet another indication of weakness for Europe’s struggling top economy, official figures released Friday indicated that the number of unemployed people in Germany increased to nearly three million in January.
After being stable for several months, the unemployment rate increased by 11,000 from December to 6.2 percent on a seasonally adjusted basis, according to the Federal Employment Agency.
According to the report, there were 2.99 million unemployed persons overall.
Although agency chief Andrea Nahles cautioned that employment was “increasingly losing momentum,” she acknowledged that an increase in unemployment at the beginning of the year was typical.
Martin Mueller, from KfW Research, said the “labour market remains weak at the turn of the year”.
“The structural problems of the economy and the gloomy mood among companies and consumers do not suggest that any significant recovery can be expected in the current year either,” he warned.
The traditional economic engine of the eurozone, Germany’s economy, has shrunk over the past two years due to a slowdown in manufacturing, rising energy prices, and a lackluster market for its vital exports.
As they look to cut expenses, many businesses, including banks and the auto industry, have started announcing job layoffs.
Political unrest has exacerbated the nation’s economic issues, as Chancellor Olaf Scholz’s government fell apart and a quick general election is scheduled for February.
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