- Thilo Heidrich, an economist at Deutsche Postbank AG
The number of unemployed people in the Europe's largest economy rose less than expected last month, while the overall jobless rate remained unchanged, a sign that deepening region's debt crisis curbed company investment and economic growth. The number of people out of work increased a seasonally adjusted 3,000, reaching a total of 2.942 million. In the meantime, the unemployment rate held steady at 6.9%, close to a two-decade low. Many Germans are hoping a jobless rate will stabilize close to historically low levels, however, signs of economic weakness are increasing. Morale among German consumers dropped for a fourth month in a row, while manufacturing sector contracted during 10-month period.
"The German labour market is showing signs of cooling, which isn't that surprising given the economic slowdown in the course of 2012," said Thilo Heidrich, an economist at Deutsche Postbank AG (DPB) in Bonn. ‘‘If the economy stabilizes and recovers in 2013, the labour market could end its weak phase already at the end of the year."
"Despite the economic dip, the labour market is not suffering a breakdown," said Stefan Schilbe at HSBC Trinkaus. "Companies are not willing to put qualified workers out of a job, also in the light of the high number of unfilled jobs."
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