Unemployment in Germany rose more than expected in October hitting the highest level in more than two years.
October’s unemployment rate rose from 6.9 percent to 7 percent in October showing Europe’s largest economy is starting to feel Europe’s financial crisis and employers are reluctant to hire new workers.
The number of unemployed Germans jumped by 10,000 people to 2.94 million. (The figure is seasonally adjusted). The forecast was for a drop of 10,000 to follow the previous month’s 22,000 decline. Meanwhile a separate report showed factory output dropped, indicating a slowdown in manufacturing in Europe’s powerhouse.
Last week data showed German investor sentiment fell to the lowest in almost three years last month and business confidence dropped to a 16-month low. In the 17-member euro region, manufacturing output declined more than previously forecast in October, suggesting the region is edging toward a recession.
The euro was little changed immediately after the report, mainly because of other more important news dominating the markets today, namely the Greek referendum vote and Europe’s crisis.