FX.co ★ Germany Jobless Rate Holds at 2020-High

Germany's seasonally adjusted unemployment rate remained unchanged at 6.3% in May, marking the highest level since September 2020 and aligning with predictions. Nonetheless, the number of unemployed individuals increased by 34,000, reaching 2.963 million—significantly exceeding the anticipated rise of 10,000. This surge brings the total unemployment count perilously close to the 3 million threshold for the first time in ten years. The significant increase in unemployment is intensifying pressure on Chancellor Friedrich Merz as he endeavors to rejuvenate Europe's largest economy following two years of contraction. The labor market is showing signs of weakness despite ongoing long-term worker shortages, and authorities anticipate further increases in joblessness throughout the summer. Additionally, the number of available job vacancies has declined to 634,000, a decrease of 67,000 compared to the previous year, indicating a slowdown in hiring demand.