Is the Eurozone Starting to Drag Down Germany?

That’s the fear raised in a recent Deutsche Welle article:

The total number of people out of work in Germany fell by 46,174 in June in unadjusted terms, to stand at 2.809 million, the Federal Employment Agency (BA) in Nuremberg reported on Thursday. On a year-on-year basis, the number fell by 84,000 people.

The unadjusted jobless rate thus dropped to 6.6 percent from 6.7 percent in May, the agency calculated.

Market analysts had expected a stronger decline in raw terms. They attributed the merely marginal change to the ongoing eurozone debt crisis, which has caused employers to be more reluctant to hire staff of late.

Temporary dent

Adjusted for seasonal effects, the picture looks even worse, with the number of job seekers in Europe’s economic powerhouse rising from May to June by 7,000.

“The risks for the economy have increased, and the labor market is showing first signs of weakening,” Federal Employment Agency Chief Frank-Jürgen Weise said in a statement.

This may be one of the factors contributing to Germany’s change of heart on the Eurozone bailout.

On the other hand, it might be nice to live in a society where those in charge of national economic policy actually pay attention to unemployment.   The full post is here.

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