Germany’s joblessness rose in October for the seventh straight month, signalling that the powerhouse of Europe is also vulnerable to the crisis from the periphery.
More Germans were without a job in October, up 20,000 from the previous month and more than the expected 10,000. Based on Germany’s Federal Labour Agency statistics, the total unemployed is now at 2.937 million people.
This brings the official unemployment rate to 6.9 percent, unchanged from a revised figure for September.
“The weaker economic situation is having a noticeable impact on the labour market. However, the labour market overall is proving robust and is in good shape,” commented the head of the Labour Office, Frank-Juergen Weise.
Affecting the job numbers is the fact that more German companies, especially in the car industry, had reintroduced short-time working hours. This will have a further negative impact on joblessness in the key engineering sector.
The sovereign debt crisis of the euro zone is beginning to take its toll. The German Economy Ministry cut its growth forecast for 2013 to 1 percent from 1.6 percent.