NUREMBERG, 28th March, 2024 (WAM) -- German unemployment rose less than expected in March — further evidence of labour-market resilience that may help underpin a modest economic recovery later this year, according to a Bloomberg report on Thursday.
Joblessness increased by 4,000, while economists polled by Bloomberg had predicted a gain of 10,000. The unemployment rate was unchanged at 5.9 percent, the Federal labour Agency said Thursday in a statement.
“The economic slump is still making itself felt on the labour market,” agency chief Andrea Nahles said. “Overall, however, it continues to hold up relatively well.”
Germany is probably at the tail end of a shallow recession, weighed down by hesitant consumers, weak external demand and high borrowing costs. Leading research institutes this week predicted minimal growth this year, with low unemployment and rising salaries among the factors behind a gradual recovery.
Evidence that a catchup in wages after the inflation spike is indeed leading to a consumption rebound is still scant, however. Retail sales fell for a fourth month in February, according to data published earlier Thursday.