Unemployment rose less than expected in May

The German Federal Employment Agency (BA) has released May data on unemployment figures.

Thus, the seasonally adjusted number of unemployed in the country increased by 9 thousand in May compared to the previous month and reached 2 million 573 thousand.

The seasonally adjusted unemployment rate of 5.6 percent in the country was unchanged. The number of unemployed was expected to increase by 15,000 in the markets.

It should be noted that the number of unemployed has increased by 284 thousand compared to May 2022.

THE ECONOMY TECHNICALLY ENTERS RECESSION

Daniel Terzenbach, Head of Regions at the Federal Employment Agency, said: “Despite the weak economic activity, the labor market is generally stable.”

In Germany, the government estimates that the unemployment rate will be 5.4% and 5.2% in 2023 and 2024, respectively.

The German economy had technically entered a recession, contracting 0.3 percent in the first quarter of this year due to the impact of unusually high inflation and rising interest rates on consumer spending.

AN EXPECTED GROWTH OF 0.4 PERCENT THIS YEAR

The economy contracted 0.5 percent in the last quarter of last year.

Although the bottlenecks that arose during the Covid-19 epidemic have eased, the country’s economy is negatively affected by the stagnation of demand due to the rise in interest rates, the decrease in confidence in the economy and the decrease in consumer purchasing power. in an environment of unusually high inflation.

The German government expects 0.4 percent growth in the economy this year.

Leading German economic institutes predict the country’s economy will grow 0.3 percent this year. (AA)