August German jobless figures rise less than forecast

• The seasonally adjusted change in German unemployment for August came in at 4,000, against a predicted 5,000.
• That compares with a prior reading of 6,000.
• Germany's jobless rate for August stood at 6.4%, matching the consensus estimate of 6.4%.
• The rate was unchanged from the previous month's 6.4%.

The number of unemployed people in Germany rose a bit less than anticipated in August, reaching a total of 2.996 million. The jobless rate stayed unchanged, reinforcing the view that the labour market in Europe's largest economy is not worsening quickly.

Given the manufacturing downturn in 2023, German employment figures have remained relatively stable. Looking at July and August specifically, the jobless numbers have been fairly benign. There is usually a seasonal jump in unemployment because of school graduates and a hiring pause over the summer break, but that has not been as noticeable this year.

Moving into autumn, unemployment is anticipated to decline modestly on a seasonal basis. That is because companies are expected to refresh their budgets and resume full operations following the holiday period.