FXstreet.com (Barcelona) - German unemployment increased by a
non-seasonally adjusted 66,900 in July, bringing the number of
unemployment to the highest level since April. According to Carsten
Brzeski, economist at ING as a warning signal, "this is the
strongest July worsening since 2004."
Brzeski also explained that the looming slowing of the German
labour market could also put a quick end to a tender new trend:
labour mobility in the Eurozone. The absence of labour mobility is
often cited as one of the main problems of the monetary union.
However, the current crisis has actually led to first signs of
(involuntary) labour mobility; from the Eurozone periphery to
Germany. Sine 2008, immigration to Germany from Spain and Greece
has more than doubled. While during the same period, German
employment increased by more than 3%, the number of employees with
a Portuguese, Spanish or Italian nationality increased by around
6%. The number of employees with a Greek nationality increased by
less than 3%. "Although there still is a lack of highly skilled
workers and experts in some sectors (eg in engineering), the
cooling of the German labour markets should limit possibilities for
further Eurozone labour market mobility," he said
"All in all, the German labour market is clearly losing momentum.
Given the high level of employment, there is no need to panic.
However, indications are increasing that light-hearted times are
coming to an end." ING economist concluded.