Unemployment rate in Germany rose to its highest level in 2.5 years

Unexpectedly, Germany's unemployment rate increased to its highest point in two and a half years, indicating that the labor market is beginning to feel the effects of Europe's largest economy's weakness.

In November, it increased from 5.8% in October to 5.9%, according to a statement released by the Federal Labor Agency on Thursday. In a Bloomberg survey, the number of unemployed people rose by 22,000, marginally surpassing the median economist estimate.

Energy related crisis potentially pushing Unemployment

The labor market has proven to be a robust component of an economy that is still attempting to recover from the energy-related crisis that occurred last winter. The third quarter saw a decline in output, and the Bundesbank believes the nation is in a recession.

A severe scarcity of skilled labor is causing half of German companies to struggle to fill open positions. Industry lobby DIHK Chambers of Industry and Commerce estimates that this could result in a loss of roughly 2% of the country's gross domestic product.

November month witnessed less willingness of hiring by companies

As per the Federal Labour Office, there were 733,000 job openings in November, which are 90,000 less than the same month last year.

Also read: CPI for India showed a four-month low of 4.87% in October 2023 : Delhi and Chhattisgarh reported least inflation rate

According to the Ifo employment barometer released on Tuesday, there was a slight decline in German companies' willingness to hire new employees in November.

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