German unemployment rises more than forecast in May

Suzie Neuwirth

GERMAN unemployment rose more than expected in May, as the Eurozone crisis weighs down on Europe’s largest economy.

The number of people without a job rose by 21,000 to 2.96 million, the fourth month-on-month gain.

The data exceeded analysts’ estimates of an increase between 5,000 and 10,000.

The unemployment figures come hot on the heels of a downgraded forecast by Barclays, who now predicts that growth in Germany will amount to just 0.5 per cent this year.

The bank had previously forecast one per cent growth in Germany for 2013.