• Germany edition
Hundreds of great job opportunities for foreign professionals at Germany's top employers - in cooperation with Monster, Experteer, Stepstone, and CareerBuilder.
jobs available
Find English-speaking professionals with The Local.
Advertise a vacancy
Unemployment edges higher in November
Photo: DPA

Unemployment edges higher in November

Published: 29 Nov 2012 11:58 CET

In seasonally-adjusted terms, the German jobless total increased by 5,000 to 2.939 million this month, the highest level since August 2011.

Analysts had nevertheless been expecting a much bigger rise of around 15,000 after similar double-digit increases in previous months.

And the jobless rate -- which measures the number of people claiming dole as a proportion of the working population as a whole -- was unchanged at 6.9 percent and therefore close to its record lows, the Federal Labour Agency said in a statement.

"The German economy is increasingly feeling the pull of the recession in Europe. Its already shallow growth path is continuing to lose momentum," said agency chief Frank-Jürgen Weise.

"The labour market has remained comparatively robust so far, but the downturn is increasingly making itself felt. Employment has practically shown zero growth, while seasonally-adjusted unemployment increased slightly in November," he said.

In raw or unadjusted terms, the total number of people registered as unemployed in Germany slipped by 1,874 to 2.751 million in November and the unadjusted jobless rate was also steady at 6.5 percent, the agency calculated.

While the November data suggested that Germany cannot escape the fallout from a crisis that has pushed many of its eurozone partners into recession, the numbers were better than expected, analysts insisted.

"Today's numbers provide further evidence that the labour market is gradually losing steam. However, the lack of qualified employees and still strong labour demand in domestic sectors should make the current slowdown a very gradual one," said ING Belgium economist Carsten Brzeski.

"In fact, if the external environment improves quickly, the slowdown could not only turn out to be gradual but also very short-lived," he said.

Berenberg Bank economist Christian Schulz agreed.

"After five months of double-digit increases, the lower figure for November may not break the trend of slowly rising unemployment, but it is a slightly positive signal," Schulz said.

It was in line with a surprise jump in the key Ifo business confidence index in November, pointing to a stabilisation of the economy, he said.

"The labour market is usually a lagging indicator and is currently moving sideways. However, it provides evidence that the German economy is not falling off a cliff and should provide some support for domestic demand," Schulz said.

The expert said some of the most recent data supported his forecast that the German economy could grow faster again early next year after a weak fourth quarter.

"It could even drag the eurozone as a whole out of recession in spring 2013," he suggested.

Newedge Strategy analyst Annalisa Piazza also said the data were "less weak than anticipated and show that the effects of the slowing business cycle are still relatively contained in Germany."

Germany has been spared a technical recession so far and a slight contraction in the economy was expected to remain short-lived.

As such, companies were reluctant to downsize their workforces as it might be more costly to reverse that once the economy started to pick up again, Piazza said.

Postbank economist Thilo Heidrich said that unemployment in Germany was nevertheless set to rise further in the coming months.

"We're expecting the jobless rate to reach an annual average 6.8 percent this year and then rise to 7.1 percent in 2013," he predicted.


The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article:

The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.

Your German Career
What do German bosses need to do to get more out of their staff? Frankfurt-based business consultant Justin Bariso has this advice.
Germany's Federal Employment Agency has identified the job sectors the country is most short of workers for. JobTalk looks at where the vacancies lie.
Students at German universities have shown themselves to be a risk-free lot in a survey by Ernst & Young. The civil service is their most popular choice of future profession, while job security is valued above all else.
Jenny Core, originally from Bolton, England, shares her tips in this week’s My German Career on being an artist in Berlin. The 27-year-old exhibits her work regularly in the city, including next to a Turner Prize shortlister.
In this week's JobTalk, Tanya Schober, who is originally from India, talks us through her journey to German citizenship.
In this week's My German Career, Anupama Gopalakrishna, who is originally from Bangalore in India, tells The Local about her new life in Frankfurt.
German Employment News
The Local speaks to experts from the German startup scene to find out how to get a job at a freshly-minted technology company.
Volkswagen hopes to put more robots to work as it says goodbye to its retiring baby boomer employees, the company's chief of human resources wrote in the Süddeutsche Zeitung on Monday.
The jobmesse deutschland (Job Expo Germany) is rolling into Berlin on Saturday as part of its annual 18-city tour. Here's why you should go if you're looking for a job in Germany.
A new study shows more and more immigrants are starting businesses in Germany, bringing some much-needed entrepreneurial spirit to the country.
It’s not quite as romantic as the Nanny Diaries, nor is it as magical as Mary Poppins. But being an au pair in Germany can be fun, as Emma Anderson finds out.
What kind of companies are hiring foreigners in Germany? And which type of firm should you target for your next career move? Recruitment expert Chris Pyak reveals all to JobTalk.

IELTS Examiners – British Council China
The British Council is recruiting a team of IELTS examiners to be based in one of our four main cities in China: Beijing, Shanghai, Guangzhou or Chongqing. This presents an exciting opportunity for new or current IELTS examiners to work in one of the world’s largest and most dynamic English language assessment environments

StepStone Deutschland GmbH
Added 10/20/14

think-cell Software GmbH
Added 10/20/14

StepStone Deutschland GmbH
Brüssel, Berlin, Düsseldorf, Warschau
Added 10/20/14

Celesio AG
Added 10/20/14

Kautex Textron GmbH & Co.KG
Added 10/20/14

StepStone Deutschland GmbH
Düsseldorf, Brussels
Added 10/20/14

StepStone Deutschland GmbH
Berlin, München, Brüssel
Added 10/20/14

JobManager24 GmbH
München / Home Office
Added 10/20/14

Bigpoint GmbH
Added 10/20/14

Churchill Frank
Added 10/20/14