Tuesday 30 June 2009

UPDATE: German Jobless Data Distortion Continues Into July

UPDATE: German Jobless Data Distortion Continues Into July

(Rewrites, adds detail.)

NUREMBERG (Dow Jones)--The number of seasonally adjusted jobless in Germany, as published by the labor office, will continue to be distorted by 15,000-20,0000 in June and July, a spokesman for the office told Dow Jones Newswires Tuesday.

Germany's monthly jobless report is due at 0755 GMT.

The office last month surprised economists with a change in its definition of job seekers, which drastically reduced the number of jobless published.

Economists said the changes should be seen as an attempt to sugar-coat adverse labor market trends ahead of general elections in September.

The labor office said more job seekers now had access to additional government measures, such as training or job placement schemes, to shield the labor market from the impact of the economic slump.

The office estimated that the impact of government labor market policies on the seasonally adjusted figures would be anywhere between 15,000 and 20,000 for the month of May.

That impact is likely to be of a similar size in both June and July, labor office spokesman John-Philip Hammersen Hammersen said Tuesday.

Economists in a Dow Jones Newswires survey expect unemployment to rise by a seasonally adjusted 50,000 in June, after adding 1,000 in the previous month.

Hammersen added that nearly all local labor offices across Germany reported a pessimistic outlook for the coming months.

As many as "97% of local labor agencies are expecting the situation to deteriorate in the coming months," Hammersen said, citing a monthly survey.

He said economists are right to expect unemployment to have risen in June in seasonally adjusted terms, but to have fallen in nominal terms. He declined to go into detail.

Labor office Web site: www.arbeitsagentur.de

-By Christine Popp and Roman Kessler, Dow Jones Newswires; +4969 2972 5514; roman.kessler@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 03:21 ET (07:21 GMT)

Copyright 2009 Dow Jones & Company, Inc.

No comments:

Post a Comment