German unemployment sees unexpected 9,000 increase

Nassos Stylianou
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German headline unemployment figure remains stable (Source: Getty)

Unemployment in Europe's largest economy rose by 9,000 in June, according to figures released today.

The minor increase in the number of people jobless goes against the 10,000 fall expected by analysts.

The headline unemployment rate remained steady at a record low of 6.7 per cent.

While the figure is the lowest since data for unified Germany was first published in 1991, the latest rise comes a month after another unexpected increase in May, with analysts seeing signs of a slowdown in Europe's largest economy in contrast with improving conditions in the periphery.

"Clearly the German economy is not as strong as touted," said Steve Collins, global head of dealing at London & Capital Asset Management

In a note ahead of the figures, Morgan Stanley predicted the rate would remain stable but expressed concerns for the short-term future.

"Looking ahead, consumers' unemployment worries have fallen further. Companies’ hiring intentions have deteriorated slightly, but are still at levels close to the historical trend, according to the Ifo employment barometer."

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