German unemployment rises above expectations in February

The number of unemployed people in Germany grew by 11K in February to 2.71 million, compared to 2K drop previous month and strongly beating expectations for rise by 6K.

The unemployment rate rose to 5.9%, the highest since June 2021, up from 5.8% jobless rate in January / consensus.

New job openings rose by 706K in February, which is 72K less compared to the same period last year and adding to warning signals.

Stronger than expected rise in unemployment in Europe’s largest economy signals that economic slowdown started to hurt overall robust labor market, and warning that sector’s growth is losing momentum, which could extend into the first six months of 2024.

Weak labor data contribute to overall grim picture, after the government has slashed its economic growth forecast for this year to 0.2% from previously estimated 1.3%.