German jobless totals rise again

Link to article and video report at Euronews

In another sign that Europe’s largest economy is in a deep recession, German unemployment rose in January for the third straight month. It was the biggest increase in nearly four years.

As the Federal Labour Office statistics were released economists predicted further significant jobless rises.

The headline total in Germany – which is not adjusted for seasonal factors – rose by 387,000 to almost 3.5 million. The Berlin government only recently predicted that total would not be reached until the end of this year.

That is 8.3 percent of the working population.

The figures have political significance with a national election due in September.

The Employment Minister Olaf Scholz, said: “It is very clear that the worldwide crisis is effecting the German job market. Looking at the figures, you can see a better trend than in the past few years. Nevertheless, it is quite obvious that unemployment is on the rise because of the economic problems that we’re seeing right now.”

German companies are slashing jobs in response to the deepening recession as demand falls for their goods and services.

People frightened of losing their jobs are delaying making major purchases, like cars; vehicle sales are predicted to fall 6.5 percent this year.

Volkswagen, Daimler and BMW have suspended production, cancelled shifts and shortened working hours.