German Jobs Recovery Slows as Supply Squeeze Damps Growth
Germany’s labor-market recovery continued at a slower pace in September amid fading momentum in the country’s reopening boom.
Unemployment in Europe’s largest economy fell by 30,000 this month, keeping the jobless rate at 5.5%. In the euro area, joblessness declined to 7.5% in August.
Forecasts for German growth have been cut in recent weeks as businesses are grappling with stubborn shortages of parts and raw materials. The issue grew even more acute in September, when more than 77% of German manufacturers reported facing such problems, according to the Ifo institute.
Services are meanwhile continuing their rebound from coronavirus shutdowns, although momentum has moderated somewhat. Unemployment in Italy, which heavily relies on tourism, unexpectedly held at 9.3% in August, disappointing forecasts for a small decline.
With industry across Europe reporting full order books and consumers shrugging off concerns about rising energy prices, furloughed workers are increasingly returning to their jobs.
In Germany, the number of people on state wage support fell to less than 700,000 last month, according to Ifo, down from a pandemic peak of about 6 million in April 2020.
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