German jobless rate edges up in June, millions in furlough

BERLIN (AP) — Germany’s unemployment rate ticked higher in June, official figures showed yesterday, but the rise was slower than in the previous two months and extensive use of a government-backed short-time work programme kept job losses down.

The unadjusted jobless rate, the headline rate in Germany, rose to 6.2 per cent from 6.1 per cent in May. It is up more than a percentage point since March, when it stood at 5.1 per cent. The Federal Labour Agency said that 2.85 million people were registered as unemployed — 40,000 more than in May and 637,000 more than a year earlier.

In seasonally adjusted terms, unemployment was up to 6.4 per cent from 6.3 per cent in May. That rate stood at five per cent in March.

Rises in unemployment in Germany and elsewhere in Europe have been moderate by international standards because employers are making heavy use of short-time work programmes that allows them to keep employees on the payroll while they await better times.

In Germany, Europe’s largest economy, the labour agency pays at least 60 per cent of the salary of employees who are on reduced or zero hours.

The agency said yesterday that it paid out for 6.83 million people in April, the most recent month for which it has figures. That compares with 2.49 million in March, the month when the pandemic hit Germany, and just 133,000 in February. Germany has 83 million inhabitants.

Germany started easing coronavirus restrictions in late April and the process has gathered pace since, but many restrictions still remain.