German unemployment increases in December
German unemployment increases in December
01-06-2010 17:58
The number of German people without a job increased in December by 60.000, amid the international economic recession, forcing the unemployment rate up to 7.8%, according to today’s data. It was the sixth straight increase of the unemployment rate. The seasonally corrected December joblessness rate was unchanged as compared with the previous month at 8.1%.Unemployment Germany
The German joblessness rate increased by 0.2 percentage points in comparison to November, the Federal Labor Office reported. At the end of 2009, 3.27 million Germans were unemployed, while in November 3.22 million people in Germany were without jobs.Last year an average of 3.423 million people in Germany were unemployed, a rise of 155.000 in contrast to 2008.
Joblessness rate
The current unemployment rate approaches the critical level of 8%, but it is not as much as feared. Labor Office director Frank-Juergen Weise commented: “The job market stayed sturdy last year, in spite of the intense slump. Unemployment increased in comparison to 2008 but it was less than expected.Out of recession
Europe’s largest economy found its path out of recession in the second quarter of last year and is on course to continue to grow. However, the government notified that joblessness is likely to continue its rise in the following months.Short-term contracts
Approximately 130.000 to 140.000 people in Germany work on short-term contracts, financed by the government as part of government measures to prevent German people to become unemployed, according to the first figures by the Federal Labor Office.Government program
The government program have been praised by economists as it made the German labor market more stable. Timo Klein, senior economist at IHS Global Insight in Frankfurt, commented: “Companies are being stimulated to preserve the majority of their current workforce. The government program enables companies to respond quickly if demand rises further.”The government program has cost nearly €5 billion (USD 7.18 billion), according to official government data in December.
