Germany's unemployment expected to rise to highest level in almost a decade |
Germany's economic weakness is expected to lead to a surge in unemployment, reaching the highest level in almost a decade, according to a study by the German Economic Institute (IW). The study reveals that unemployment will average just under 2.8m this year, the highest since 2015. However, it is still below the peak in 2005 when almost 4.9m people were unemployed. Companies' employment plans do not indicate any growth for the rest of the year, with the number of newly registered vacancies falling to its lowest level in five years. Germany's unemployment rate is projected to rise to 6% this year. Despite the economic downturn, the number of employed individuals rose by 340,000, attributed to labour hoarding. However, as the period of weakness extends, staffing levels may need to be adjusted, impacting companies' competitiveness. |
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