German unemployment rises slightly more than expected in July
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A commuter train passes by the skyline with its financial district in Frankfurt, Germany, October 25, 2021. REUTERS/Kai Pfaffenbach
By Maria Martinez
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.
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.
"The weak trend observed in the labour market over recent months is continuing," said the labour office's Daniel Terzenbach.
ABOVE THE 3 MILLION MARK IN UNADJUSTED TERMS
The overall unadjusted number of unemployed people ticked over the 3 million mark in July.
"Unemployment and underemployment are rising noticeably in July, primarily due to seasonal factors," Terzenbach said.
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.
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 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)
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