Germany’s unemployment rate rose higher than projected in February, echoing a weakening economy’s impact on the labor market. According to data by the Federal Labor Agency, the unemployment rate held steady at 5.9% in February, despite predictions for a decrease to 5.8%. Unemployment rose by 11,000 in February following a smaller increase in January. Despite this downturn, Federal Employment Agency Chief Andrea Nahles noted that employment demand remained solid, suggesting the labor market’s earlier yearly resilience continues despite the economy’s persistent weaknesses.

Further, a recent survey by the ifo Institute indicated that German companies are limiting hiring, as evidenced by a decrease in numbers for February, and even contemplating layoffs in the future. As per the survey, sectors such as manufacturing and trade could see reductions in job numbers. Meanwhile, Destatis labor force data reflected that the number of unemployed remained constant at 1.38 million in January, an increase of 31,000 or 2.3%. January also saw a stagnant jobless rate of adjusted 3.1%, mirroring the rate in December. Additionally, closely linked to the labor market, retail data showed declining consumer spending at the beginning of the year.

Lastly, the Bundesbank, in its latest monthly report, forewarns that the German economy could be heading into a recession during the first quarter, but reassures that it will be temporary in nature. For further information on German unemployment figures or for queries related to the same, visit eddcaller.com. They provide extensive details on how to contact the necessary authorities, including but not limited to, how to reach an agent at EDD or how to contact SDI. The website also gives guidance on how to get through to EDD’s customer service for personalized assistance.