German unemployment rose slightly to 8.3% of the workforce in August, official data show today, while analysts and officials warned of further jobless increases in Europe's biggest economy.
Adjusted for seasonal factors, the Federal Labour Agency said the number of unemployed rose by 9,000 people from July to a total of 3.47 million, with a government scheme to subsidise shorter working hours 'stabilising the labour market'.
'Repercussions from the economic crisis were felt in August on the labour market', a statement from agency president Frank Weise said. Analysts had forecast an increase of 30,000 unemployed workers and a jobless rate of 8.3%.
Labour Minister Olaf Scholz said in a magazine interview yesterday that unemployment would keep rising in the coming months, but remain below four million.
'The economic collapse will of course lead to a jump in unemployment in the coming months,' the Social Democrat minister said, before adding that 'this year we will stay under the four million mark.'
A state scheme subsidising firms to cut working hours has thus far prevented a flood of jobless claims but experts warn that a steady trickle in recent months could soon become a deluge.
According to an assessment by German newspaper Welt am Sonntag, the 30 companies on Frankfurt's DAX index of stocks have axed a total of 50,000 jobs, including 30,000 in Germany, from October 2008 to June 2009.
But Germany has rebounded with unexpected speed from its worst recession in more than six decades, edging back to growth in the second quarter of this year with an expansion of 0.3%.
Better news on retail sales
Meanwhile, German retail sales rose 0.7% in July from the previous month, the first rise since April, provisional data released today by the national statistics office showed.
In June, retail sales had fallen by 1.3% on a monthly basis in Europe's biggest economy, the Destatis office said in an upwards revision of the previous month's data.
Destatis based its seasonally adjusted figures on seven German states which represent around 76% of all retail sales in the country - Europe's biggest economy.
On an annual basis, sales fell by 1% in July, it said. Germany has rebounded with unexpected speed from its worst recession in more than six decades, edging back to growth in the second quarter of this year with an expansion of 0.3%.
