Germany Unemployment Up In May

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Germany Unemployment Up In May

Germany'S Unemployment Up By 10k In May

According to the data from the Federal Labor Office, an increase was seen in the number of unemployed people in Germany. During the month of May, the unemployment rate showed a rather surprising increase which was higher than the forecasts.

In terms of seasonally adjusted numbers, unemployment increased by 25,000 during the month of May against a forecast of 10,000.

Jobless Rate Remains At 5.9%

According to an expert, the Spring season didn't bring any recovery in the labor market this year. They also added that it has been a long time since the market has been waiting for an improvement in this sector.

For now, the jobless rate remains at nearly 5.9%, which is still quite high given the size and robustness of the German economy.

During the month of May, there were around 702K job openings, which is around 65K lower than what we saw last year.

As for the skilled workers, the shortage has gone down a little bit which shows that the unemployment effects are not that widespread after all.

Especially in the structural engineering and construction field, the shortage of skilled labor has improved as of late. In fact, the aerospace technology has also shown an improvement in the employment numbers.

Despite the positive trend from a few sectors, it doesn't mean that the employment situation has changed in the long term.

At the bottom of the issue is the demographic developments that have forced many skilled workers to leave the labor market. This trend will likely intensify during the next few years, further driving up the unemployment rate in Germany.

Meanwhile, the ECB interest rate is still quite high with hopes that the first rate cut is just around the corner. If the ECB delivers the rate cut, it could lead to an improvement in the employment situation in the country.

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