The number of people out of work in Germany moved back above the key level of five million in January, as the bad winter weather led to lay-offs in outdoor sectors such as the construction sector.
The German jobless total rose by 408,000 to just over five million in January in unadjusted terms, pushing the jobless rate up to 12.1% from 11.1%, the Federal Labour Agency said.
Unemployment usually increases in the winter months as a result of the bad weather and the traditional deadline for the expiry of employment contracts in December. It was the first time since March 2005 that the German jobless total has been above the politically sensitive level of five million.
The figures were 'a lot less favourable than is traditionally the case at this time of year,' said labour office chief Frank Weise. 'But this does not change the fundamental downward trend in unemployment,' he added.
He cited two special factors: a later start to the winter break and an above-average number of older people registering themselves as unemployed as a result of changes in benefit rules.
As a result, seasonally adjusted data published separately by the Bundesbank also showed a rise in the German jobless total of around 69,000 to 4.7 million in January. The adjusted jobless rate edged up to 11.3% from 11.2%.
Separate figures from statistics office Destasis showed that German retail sales fell in December, as higher heating and electricity costs affected consumer sentiment in the key Christmas period. Retail sales fell by 1.4% in the month and by 1.6% over 12 months. For 2005 as a whole, retail sales rose by 1.2% on a nominal basis and were up by 0.7% in real or price-adjusted terms.
