- Labor Agency head Frank Weise
The number of unemployed people in the Europe's biggest economy surged twice as much as economists expected in October, highlighting the vulnerability of Germany's economy to region's debt crisis. The number of Germans out of a job jumped 20,000 in October to a total 2.94 million people, while the unemployment rate remained unchanged at 6.9% level from September. The German economy is now expected to add only 0.8% overall this year and to expand by 1% in 2013.
"The weaker economic developments are making themselves noticeable on the labor market," said Labor Agency head Frank Weise. "But overall the labor market remains robust and in good shape."
"Today's numbers provide further evidence that the labour market is gradually losing steam, indicating the cushioning impact on the economy should peter out in the coming months," said Carsten Brzeski of ING Bank.
The Stoxx Europe 600 Index rose 0.85 per cent to 271.76. Germany's DAX Index soared 1.13 per cent to 7,284.40, while France's CAC 40 Index added 1.48 per cent to 3,459.44
© Dukascopy Bank SA