By Maria Martinez
BERLIN (Reuters) -The number of people out of work in Germany rose by fewer than expected in November, but labour demand continues to slow, underscoring a sluggish recovery and persistent lack of momentum in the job market.
In seasonally adjusted terms, the jobless figure rose by 1,000 to 2.973 million, labour office figures showed on Friday, while analysts and economists had predicted an increase by 5,000 in a Reuters poll.
The seasonally adjusted jobless rate in Europe’s largest economy was unchanged from 6.3% a month earlier, in line with the forecast.
EMPLOYMENT STAGNATING
Labour office head Andrea Nahles said the number of people in employment was stagnating and demand for labour remained subdued.
There were 624,000 job openings in November, 44,000 fewer than a year ago.
Companies in Germany have grown more restrictive in their personnel planning, a survey by the Ifo institute showed on Wednesday, with the employment barometer falling to its lowest level in more than five years.
“Many companies are continuing to cut jobs,” said Klaus Wohlrabe, head of surveys at Ifo. “Due to the stuttering economy, the labour market trend remains weak.”
Germany’s economy is expected to grow by only 0.2% in 2025 after two years of contraction, as Chancellor Friedrich Merz’s spending measures need time to translate into better conditions.
INFLATION UNCHANGED IN GERMAN STATES
Inflation remained unchanged from the previous month in four important German states in November, preliminary data showed, suggesting the country’s national inflation rate could remain constant this month.
Inflation stayed at 2.2% in the states of Bavaria and Lower Saxony and at 2.3% in North Rhine-Westphalia and Baden-Wuerttemberg.
Germany will publish national inflation data for November later on Friday, with the rate expected to rise slightly to 2.4% from 2.3% the previous month.
The German data comes ahead of the euro zone inflation release on Tuesday. Inflation in the bloc is expected at 2.1% in November, unchanged from the previous month, according to economists polled by Reuters.
The European Central Bank left interest rates unchanged at 2% in October and repeated that policy was in a “good place” as economic risks recede.
Import prices in Germany decreased by 1.4% year-on-year in October, data from the statistics office showed, while analysts polled by Reuters had predicted a 1.6% decrease.
RETAIL SALES REMAIN WEAK AHEAD OF CHRISTMAS
Retail sales fell by 0.3% on the month, data from the statistics office showed, although analysts polled by Reuters had predicted a 0.2% increase.
The data remain consistent with a sharp slowdown in retail sales growth through 2025, following strong gains at the end of 2024 and into this year, said Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics.
Germany’s retail sector expects modest annual growth this holiday season, with sales forecast at 126.2 billion euros ($146.18 billion) for November and December, according to the retail association HDE.
A survey by the Ifo institute showed that around one in four companies in the retail sector anticipated business would be poor this Christmas season.
“Retailers’ expectations are subdued. Many of them are entering the most important sales period of the year without any great hopes,” said Klaus Wohlrabe, head of surveys at Ifo.
($1 = 0.8633 euros)
(Additional reporting by Friederike Heine in Berlin, Bernadette Hogg and Tristan Veyet in Gdansk, Editing by Miranda Murray and Alex Richardson)
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