German unemployment rises slightly more than expected in July
German Labour Market and Economic Trends in July
By Maria Martinez
Unemployment Figures and Market Reactions
BERLIN, July 31 (Reuters) - The number of unemployed people in Germany rose slightly more than expected in July and came close to the politically important 3 million mark in seasonally adjusted terms.
Labour market data typically react with a lag to geopolitical shocks such as the Iran conflict, which started in February.
Seasonally Adjusted Data
In seasonally adjusted terms, the jobless figure grew by 6,000 to 2.99 million, labour office figures showed on Friday, while analysts polled by Reuters had predicted an increase of 5,000.
The seasonally adjusted jobless rate stood at 6.4%, up from 6.3% the previous month.
Labour Office Commentary
"The weak trend observed in the labour market over recent months is continuing," said the labour office's Daniel Terzenbach.
Unadjusted Unemployment and Contributing Factors
Above the 3 Million Mark
ABOVE THE 3 MILLION MARK IN UNADJUSTED TERMS
The overall unadjusted number of unemployed people ticked over the 3 million mark in July.
Seasonal and Economic Influences
"Unemployment and underemployment are rising noticeably in July, primarily due to seasonal factors," Terzenbach said.
Inflation and Economic Outlook
Rising Inflation
Adding to the gloom, inflation accelerated to 2.8% year-on-year in July from 2.4% in the previous month on higher energy prices caused by the Iran conflict, data showed on Thursday.
GDP Growth and Risks Ahead
Germany's gross domestic product grew more than expected in the second quarter, but risks loom as hostilities flare up again between Iran and the U.S., and prices could stay high for longer than initially expected, taking a toll on investment and consumption.
Labour Demand and Job Openings
Labour demand remains weak, the office said. In total, 653,000 job openings were registered with the labour office in July, 25,000 more than a year ago.
(Reporting by Maria Martinez, editing by Thomas Seythal and Miranda Murray)
