German Jobless Rate Crept Up in November as Interest Rates Bite

Germany's jobless rate ticked up in November, a further sign of slowdown in Europe's largest economy, hit by central bank interest rates and low global demand.

German adjusted unemployment rose to 5.9% in November, from 5.8% in October and 5.7% in September, data from the Federal Employment Agency showed Thursday.

Economists polled by The Wall Street Journal expected the rate to remain the same in November at 5.8%.

The number of unemployed people rose at a slower rate in November, however, climbing 22,000 on a seasonally adjusted basis, less than the 31,000 increase in October, the data showed. Economists expected a 20,000 increase in jobless claimants.

But demand for labor eased on year, indicating a loosening jobs market, with the number of registered job vacancies at 733,000, a 90,000 fall compared with the same point in 2022, the agency said.

The economic outlook in Germany remains weak, although a looser jobs market could confirm the European Central Bank may have ended its recent hiking cycle, even if transmission of higher borrowing costs is yet to fully impact the economy. Germany GDP contracted 0.1% in the third quarter of this year.