Germany’s May unemployment up 24K to 2.905M on adjusted terms

Nathan Andrada – Fourth Estate Cooperative Contributor

Berlin, Germany (4E) – Unemployment in Germany unexpectedly grew in May based on adjusted terms, according to a report from the Nuremberg-based Federal Labor Agency released Wednesday.

On a seasonally adjusted basis, the number of jobless climbed 23,937 to 2.905 million in May, the country’s labor agency said. Economists predicted a drop of 15,000, according to the median estimates of 31 economists surveyed by Bloomberg News. The adjusted jobless rate remained unchanged at 6.7 percent, which is the lowest level in more than 20 years.

The increase in adjusted unemployment was largely due to weather factors, the agency said. Unemployment actually declined by 61,000 this month in unadjusted terms. At this time of the year, the fall was smaller than is usually the case, the agency added.

Confidence in Germany’s business sector fell in May on worries that growth will ease as the 18-nation common currency bloc, the nation’s largest export market, struggles to maintain its momentum. The Bundesbank has expected that the German economic growth this quarter is lower compared with the pace in the first three months of 2014, which benefited from favorable weather.

The number of unemployed this month climbed by 7,919 in eastern Germany and 16,018 in the western part of the country, according to Wednesday’s report. The total number of Germans out of work fell by 24,798 the prior month.

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