German Unemployment Edges Higher as More Refugees Join Workforce
German unemployment rose after more refugees from the war in Ukraine joined the workforce in Europe’s largest economy.
Joblessness rose by 28,000 in August, lifting the unemployment rate to 5.5%. That was just below the median estimate in a Bloomberg poll of economists for gain of 28,500.
“Despite the economic and political uncertainties, the labor market is robust,” Federal Labor Agency chief Andrea Nahles said Wednesday in a statement. “Unemployment and underemployment increased again more strongly in August than is usual for the time of year. However, this is still due to the registration of Ukrainian refugees.”
Germany has so far registered close to a million people fleeing the fighting in Ukraine, though the actual number of those that have arrived and not returned remains unclear. A large majority is women, many traveling with children, according to surveys.
The labor agency said that despite the statistical rise in joblessness, demand for workers persists in Germany following the lifting of pandemic restrictions. A survey this month by S&P Global, however, indicated that job creation is slowing amid increasing uncertainty over the economic outlook.
Germany is among the most-exposed countries to the curtailment of natural gas shipments from Russia. An increasing number of economists predict it will slip into recession, even if it avoids energy rationing this winter.
