Mon, May 28, 2012, 1:24 PM EDT - U.S. Markets closed for Memorial Day

German jobless rate up to 7.4 pct in February

German unemployment edges up to 7.4 percent in February as frosty winter bites

BERLIN (AP) -- Harsh winter weather pushed Germany's jobless rate up to 7.4 percent in February, while unemployment was static in seasonally adjusted terms after three months of declines, official data showed Wednesday.

The unadjusted jobless rate was up from 7.3 percent in January, with 3.11 million people registered as unemployed, the Federal Labor Agency said. The figure was 26,000 higher than in January but 203,000 lower than a year earlier. Hard winter weather typically weighs on activity in sectors such as construction.

The job market in Germany, Europe's biggest economy, nonetheless remains in good condition after two years of strong economic growth.

Its strength contrasts with high unemployment in economically weaker countries that have been hit hard by the eurozone debt crisis. Spain and Greece have jobless rates above 20 percent.

Wednesday's report showed that the seasonally adjusted jobless rate was steady at 6.8 percent in February, with the number of people out of work unchanged.

IHS Global Insight economist Timo Klein noted that the declines between November and January were above average. In each of those months, unemployment figures had improved by more than 20,000 in seasonally adjusted terms.

The positive underlying trend is undented "and there is no near-term end to this trend in sight," he said. Recent surveys have shown steadily rising business and consumer confidence.

Wednesday's figures suggest a more modest improvement in the job market in the months ahead than Germany has seen to date, said Carsten Brzeski, an economist at ING in Brussels.

"The strong dynamics of last year will not be repeated this year," he said. "With lower growth and an unemployment rate close to the natural rate, the job miracle should gradually come to an end, entering a period of consolidation."

The German economy shrank by 0.2 percent in the final quarter of last year but is expected to return to modest growth in the current quarter — avoiding a recession, or two consecutive quarters of contraction.

 

11 comments

  • Cursecheck Glitch BITCH!  •  2 months ago
    the fact of the matter is that we need to get it through our heads that AMERICA's free run is over - we are no longer top dog - otheres are going to / will shine now - so we better stop supporting israel and the middle east, ditch our military bases, cut our military spending, stop the special interests and and fix our own lands up so that we can prosper under harder conditions - that includes getting clued in to how the government is playing games and rising up to stop it before we suffer
  • Mark  •  2 months ago
    Yeah it was harsh weather. Not the Euro economy tanking
    • Rudolf 2 months ago
      You seem to know a lot. Why is the Euro strengthening vis-a-vis the $?
  • A Yahoo! User  •  2 months ago
    lol "the weather did it" - surprised the didn't blame Bush. lol
    • Rudolf 2 months ago
      Why are you Anonymous? Who are you afraid of?
  • Kaos  •  2 months ago
    To my brothers in Germany.....don't bailout Greece. Don't do it. You guys work they live off the system. Not a good combination!
  • CommonSense  •  Newark, New Jersey  •  2 months ago
    Wonder who the chinese will sell to as the Middle Class is disappering while the Chinese still have enough spare capacity to pay $1/Hour?
  • davel  •  Capitol Heights, Maryland  •  2 months ago
    With the US providing them with billions in free military protection, they are able to concentrate their resources on manufacturing and exporting.
    Not only do they have a low unemployment rate, they employ their people designing and building stuff - not working for the govt, building defense stuff, stocking shelves, like USA does.
    They look out for their own economic interest and we should emulate them.
    • Rudolf 2 months ago
      Good for them! We are in the clutches of the military/industrial complex, the one Eisenhower warned us about. The U.S. military can always up and leave Germany but no, we want control of the Universe.
  • ice  •  2 months ago
    To Dave: We supply "free military protection" because there was this event called World War II, where 500,000 U.S. soldiers died - which came 20 years after World War 1. You can Google it. Since Germany started both world wars, as part of the "Treaty" we demanded that Germany would not have a military so it would not start WW 3. Likewise, if you are wondering why Japan does not have an active military and we have troops in Japan, you can Google that, too.
  • Neutral  •  2 months ago
    That's what beer, cars, and total fiscal domination of your neighbors will do for you.

    The current Germans are doing precisely what the 1930's germans did, but without the guns.

    Eastern Europe will be next. Cannot blame the Germans, competition and proficiency is in their DNA.
    • Rudolf 2 months ago
      Good for them, someone other than the U.S. military needs to run the show.
  • Mark  •  2 months ago
    Bloomberg Headline
    Germany Showing Strength as Unemployment Holds at Two-Decade Low: Economy
  • Cursecheck Glitch BITCH!  •  2 months ago
    filthy Germans with their socialism - see what happens when you embrace that communist welfare trash - you have a 7.4 percent unemployment rate - those chumps cant hold a candle to our fake 8.3 PERCENT (REALLY LIKE 17%) BECASUE cAPITALISM ADN REPUBLICAN IDEALS WILL CRUSH THOSE COMMIES ANYTIME!!!!!
  • Fritz  •  Cedar Rapids, Iowa  •  2 months ago
    WRONG THIS TIME THEY ARE BEGGING FOR IT!
 
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