In brief
Germany’s unemployment rate slipped to 6.3 percent in October, according to official data. Senior agency officials said the drop was modest and that economic conditions remain insufficient for a stronger recovery. A business survey noted firms are becoming more cautious about cutting jobs. Meanwhile, the country’s GDP grew only 0.2 percent in the third quarter, the slowest pace of growth since early in the year.
Germany’s unemployment rate edged down to 6.3% in October, from 6.4% in September, as 40,000 fewer people were registered as unemployed, leaving the total unemployed at 2.955 million, according to the Federal Employment Agency.
Senior agency officials said the decline was modest, noting that economic conditions still remain insufficient for a stronger recovery in the labour market.
Andrea Nahles, head of the agency, said,
"Economic conditions remain insufficient for an improvement in the labour market."
A business survey from the Munich‑based ifo Institute indicated that German firms are becoming more cautious about cutting jobs, particularly in the automotive sector, after years of economic weakness and widespread plans to reduce staffing levels.
Klaus Wohlrabe, head of surveys at ifo, added,
"Companies are becoming somewhat more cautious about cutting jobs, but the economic upturn still lacks the strength for a broad expansion of the workforce."
Related economic data from the same agency showed that the country’s GDP grew by only 0.2 percent in the July‑September quarter, the slowest pace since the first half of the year, as exports and investment fell.
Overall, the data underscore a fragile economic recovery that has been slowed by weak demand, higher energy prices and a continuing labour‑market shortfall.