German jobless rise stays below forecasts

German unemployment adjusted for seasonal swings rose for a 10th consecutive month in November but by less than economists had…

German unemployment adjusted for seasonal swings rose for a 10th consecutive month in November but by less than economists had expected as new job creation measures took effect.

The Federal Labour Office said on Thursday unemployment rose by 7,000 people month-on-month to 4.464 million, the highest level since 4.476 million in January 1998. That increase pushed up the adjusted jobless rate to 10.8 per cent from 10.7 per cent.

"There are clear signs of a revival of domestic demand. But growth of 0.1 per cent in gross domestic product in the third quarter is still not enough to provide sufficient positive momentum for the labour market," Labour Office head Mr Frank-Juergen Weise said.

The increase was below the mid-range forecast of economists for a gain of 10,000, mainly due to measures to encourage job seekers back to work in low paid jobs.

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Headline unadjusted unemployment, which the German media typically focuses on, increased by 50,800 in the month to 4.257 million.