German Unemployment Jumps for Third Month Amid Coronavirus Shock


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German unemployment rose to the highest level in nearly five years, highlighting the harsh economic consequences of the coronavirus pandemic.

A gain of 69,000 in June has taken the number of job losses in the second quarter to 678,000. Yet more redundancies were prevented by generous state wage support, the Federal Labor Agency said Wednesday.

The report is the latest hinting that country’s road to recovery will be long. While households have started to spend again — retail sales surged in May — a recent survey by the Association of German Chambers of Industry and Commerce shows that one in two companies doesn’t expect a return to normality before next year at the earliest.

44,766 in U.S.Most new cases today

-8% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23

-1.​053 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23

-2.​3% Global GDP Tracker (annualized), May

The number of people working reduced hours fell to 6.7 million in June from 7.3 million the previous month. While hospitality, transport and retail recorded some of the greatest drops as lockup rules were gradually phased out, furloughs continued to rise in Germany’s manufacturing sector, according to a separate report.

Policy makers have warned of a difficult period ahead. The International Labour Organization said Tuesday that jobs lost in the crisis so far won’t be fully recovered in the second half of the year even under the most optimistic assumptions.

Read more:

  • Virus Labor Market Destruction Is Proving Worse Than Anticipated
  • Furloughed Workers in Germany Are Starting to Return Full Time
  • Europe Is Approaching a Disastrous Economic Cliff Edge

— With assistance by Kristian Siedenburg, and Harumi Ichikura

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