German labor market braves winter chill



AGENCE FRANCE PRESSE

Published — Friday 4 January 2013

Last update 4 January 2013 12:38 am

| نسخة PDF Print News | A A

FRANKFURT: Unemployment in Germany remains close to record lows as the labor market continues to hold up comparatively well to the euro zone debt crisis, official data showed yesterday.
In seasonally-adjusted terms, the jobless rate — which measures the number of people registered as unemployed against the working population as a whole — stood at 6.9 percent in December, only fractionally higher than the post-unification low of 6.8 percent seen throughout most of last year, the Federal Labour Agency said in a statement.
In concrete terms, the jobless total rose by 3,000 to 2.94 million on a seasonally-adjusted basis, a much smaller increase than the 10,000 analysts had been expecting.
"The German economy is feeling the pull of the recession in Europe. Indicators suggest that gross domestic product shrank in real terms in the fourth quarter," said agency chief Frank-Juergen Weise.
"So far, the labor market has held up fairly robustly to the economic deterioration. But the slowdown is leaving its mark," Weise cautioned.
Taking 2012 as a whole, the annual average jobless total fell by 78,837 to 2.897 million on a raw or unadjusted basis and the annual average jobless rate fell to 6.8 percent from 7.1 percent a year earlier.
"The labor market proved again to be very robust at the end of 2012, as during the course of the whole year, despite the difficult economic conditions," said Economy Minister Philipp Roesler.
"The positive condition of the labor market will largely help stabilize the domestic economy and increase the chances that the German economy can soon overcome its current phase of weakness," Roesler said.
Economists were similarly encouraged by the better-than-expected monthly jobless data for December.
"The German labor market remains in good shape," said Barclays Research economist Thomas Harjes.
It "again appeared relatively stable in December, despite poor weather conditions, indicating that most firms do not expect the currently weak economic environment to persist for much longer."
And while the German economy, Europe's biggest, is slowing noticeably, "any further increase in unemployment figures... should be modest while reduced hours worked and short-time work schemes act as a buffer," the analyst said.
Timo Klein at IHS Global Insight said that "overall, labor market conditions continue to be healthier in Germany than in most other countries in Europe."
And while the positive trend has come to an end, "we do not expect any major deterioration with large increases in joblessness during the coming months," he said.
Berenberg Bank economist Christian Schulz said that "as economic confidence is already improving, prospects are brightening for 2013. However, since the labor market usually lags the economic cycle, unemployment might still rise slightly over the next few months before resuming its downtrend."
Natixis economist Constantin Wirschke said he expected the German job market "to remain relatively robust in 2013."
"All in all, for 2013 we do not expect the labor market to deteriorate significantly. On the other hand, we also do not expect firms to add a significant number of jobs either. Therefore, the German unemployment rate will remain at a historically low level throughout 2013," he predicted.

What's happening around Saudi Arabia

ABHA: Gov. Faisal bin Khalid bin Abdulaziz, Asir region, ordered the formation of a working team in Bisha to address the status of the battered woman who recently shared her suffering on social networking sites.Mohammed bin Sabrah will head the team,...
MADINAH: Madinah Gov. Prince Faisal bin Salman launched a series of charity and developmental projects during his recent visit to Khaibar Province at costs exceeding SR100 million.They included municipal projects at Khaibar, Al-Salsah and Al-Ashash M...
MADINAH: Pilgrims spend the most beautiful moments in the Prophet’s Mosque, where they pray in Riyazul Jannah (garden from the gardens of paradise) and get to greet the Prophet, peace be upon him, said the Omani pilgrim, Ahmed Nasser. “Such deeds giv...
MADINAH: A member of the Senior Scholars Council, Dr. Abdullah Al-Manieh, has called for the establishment of women’s departments at the Islamic University in Madinah in line with other universities in the Kingdom.“The Muslim woman has had her own st...
JEDDAH: The euphoria over the sudden resumption of call facility on WhatsApp in the Kingdom on Saturday was short-lived as the service was not widely available the following day. A large number of users of the popular messaging service, barring a few...
JEDDAH: Work on developing and modernizing the Kingdom’s 27 airports is ongoing and is expected to be completed within the next five years, according to Sulaiman Al-Hamdan, president of the General Authority for Civil Aviation (GACA).“Our goal is tha...
RIYADH: Saudi Arabia and South Korea are set to widen cooperation in the health care sector following a joint road show which underlined potential areas of cooperation and showcased world-class health facilities of that country. The event, titled “Ko...
RIYADH: The Saudi Green Building Forum (SBGF) believe that about fifty percent of the ongoing eco-friendly green building projects across the Kingdom are facing delays for not fulfilling criteria.Faisal Alfadl, secretary-general of the forum, on Satu...
AL-UQAIR: The low-quality of education in the Kingdom arises from many factors. Included among these are the complexity of the system itself, unclear educational vision, non-professional education development programs, and instability due to changing...
JEDDAH: Security authorities in Jeddah called a citizen and his wife for interrogating with them on the charges of beating their Eritrean housemaid.Makkah Police media spokesman, Col. Dr. Atti bin Attiah Al-Quraishi, said: “The Safety Center of Jedda...
AL-UQAIR: The Saudi Commission for Tourism and National Heritage (SCTNH) has deposited SR600 million with local banks for the Al-Uqair Development Company in Al-Ahsa, SCTNH President Prince Sultan bin Salman has said.“Saudi citizens have some equitie...
JEDDAH: A number of preachers have been arrested for using sermons to promote political ideologies, said Fahad Sulaiman Al-Khalifa of the Ministry of Islamic Affairs.He said the issue was not widespread, and the ministry reiterated that the sermon sh...
JEDDAH: A Saudi military analyst and retired brigadier, Ibrahim Al-Marie, has called for the compulsory drafting of young Saudis into the military.This is, he said, not only because the Kingdom is facing regional threats, but because of its benefits...
RIYADH: Advertisement campaigns for fake TOFEL and ILET certificates are being monitored on social media websites in an effort to halt this illegal practice. The certificates originate from Jordan and can be obtained by clients for a sum of SR2,000,...
JEDDAH: A group of young men has come up with a novel home cinema project.The project involves providing a cinema hall show for lovers of the entertainment medium by providing projector screens, sound systems and lighting devices with suitable and co...

Stay Connected

Facebook