FRANKFURT, Germany – Unemployment in Germany stagnated in June as clouds begin to appear on the horizon of Europe's biggest economy and favourable statistical effects from mild weather wear off, official data showed on Tuesday.
The unemployment rate stood at 6.7 per cent in seasonally adjusted terms in June, unchanged from May, while the number of people registered as unemployed rose by 9,000, the Federal Labour Office said in a statement. That took analysts by surprise. They had projected a decline of around 7,500.
"The economic outlook remains positive, but is gradually starting to cloud over," the labour office said in a statement. "Unemployment did not rise in the winter because of mild weather, so the usual decline in June was shallower than expected," the office explained. "Nevertheless, taking into account this one-off effect, the fundamental trend in the winter and spring months remains positive," it added.
In raw or unadjusted terms, the German jobless total fell by 49,250 to 2.833 million and the unadjusted jobless rate slipped to 6.5 percent from 6.6 percent, the office calculated.