A small drop in Germany’s unadjusted unemployment rate has boosted hopes that Europe’s biggest economy has turned the corner.
The headline jobless total fell by 48,000 to a rate of just over 8 percent. Unemployment actually rose in June but the month-on-month increase was less than expected. It’s risen for the past eight month’s consecutively, but the rate of increase has been slowing in four of the past five months. Though trend is encouraging, analysts and government officials remain cautious. Frank-Jürgen Weise, Head of Federal Labour Agency: “The consequences of the crisis on the labour market are still modest. In a way, they are absorbed by short-time work. In any events, the crisis concentrates mainly on some industries, for instance, export industries that suffer from the global slump in demand.” Economists say job losses are likely to accelerate in the next few months as the downturn hits home. But the outlook is less bleak than before.