German jobless fee stays regular in December, regardless of looming job cuts

Investing.com — Germany’s unemployment fee remained steady at 6.1% in December, based on information launched by the Federal Employment Company on Friday. This determine got here in barely decrease than the 6.2% predicted by economists surveyed by The Wall Road Journal.

Whereas the jobless fee has held regular, there are indicators of a possible slowdown within the labor market. The variety of jobless claims elevated by 10,000 on an adjusted foundation in December, a big rise from the 6,000 reported in November.

Moreover, the variety of registered job vacancies was round 654,000, a lower of roughly 59,000 in comparison with the identical interval the earlier 12 months.

A number of main industrial firms, together with Thyssenkrupp (ETR:TKAG), Bosch (NS:BOSH), and Schaeffler, have not too long ago introduced or hinted at widespread job cuts. This comes as Europe’s largest financial system continues to wrestle with manufacturing challenges.

Volkswagen (ETR:VOWG_p), the auto large, reached an settlement with labor unions final month to keep away from quick layoffs and manufacturing facility closures in Germany. Nonetheless, the corporate nonetheless plans to scale back its workforce by 35,000 within the coming years.

The unemployment fee in Germany has elevated barely from round 5% in 2022. The present fee is on par with the early 2021 ranges when the financial system was nonetheless reeling from the influence of the pandemic.

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