Number of unemployed people in Germany rises above estimates

BERLIN

The number of unemployed people in Germany increased by 27,000 in October, reaching 2.86 million, and going above the market estimates of a 15,000 increase, according to the country’s Federal Employment Agency (BA) on Wednesday.

The seasonally adjusted unemployment rate remained unchanged at 6.1% in October.

Andrea Nahles, director of the BA, said that the expected acceleration of the labor market has yet to be seen this fall.

The German economy, after shrinking 0.3% last quarter, grew 0.2% this quarter, avoiding a technical recession, though still remaining fragile, especially due to persistent weakness in the country’s manufacturing sector.

Rising interest rates, cyclical risks, and structural challenges plague the country’s economy, hindering growth.

Last year, the German economy was the only one among the G7 to shrink, and if it shrinks once again this year, Germany will be the only economy among the economic forum to do so again.

*Writing by Emir Yildirim in Istanbul