German unemployment unexpectedly increases in September

German unemployment unexpectedly rose in September, although the unemployment rate remained at a record low, according to data released by the Federal Statistics Office.

The unemployment rate came in at 6.1%, unchanged from the previous month and in line with economists’ expectations.

Meanwhile, the number of unemployed people increased by a seasonally-adjusted 1,000 to 2.68m, versus expectations of a 5,000 drop.

Pantheon Macroeconomics said: “The headline was tainted by the first increase in German unemployment claims in a year, but the trivial rise does not change the underlying story of a still-tight labour market. In addition, the number of seasonally adjusted vacancies rose by 6K, indicating a further net tightening on a month-to-month basis.

“Finally, the increase in unemployment claims is consistent with the decline in the IAB index for unemployment claims earlier this year. The index has risen in recent months, however, indicating that the rise in claims is unlikely to be sustained for long.”