Unemployment in Germany rose for a ninth consecutive month in October to reach its highest level in over six years as high oil prices stifled new hiring and put the brakes on foreign demand for German goods.
Seasonally adjusted unemployment rose by 12,000 to 4.457 million, leaving the jobless rate unchanged at 10.7 per cent , and confirming figures earlier obtained by Reuters.
Economists also said Germans were increasingly re-registering as unemployed in order to be eligible for support when jobless and social welfare payments are merged in January, with some predicting the total could soon reach five million.
Mr Peter Meister, an economist at ING-BHF Bank, said cost worries fuelled by high oil prices were curbing fresh staff hiring at firms.
But he was "relatively optimistic" prices had peaked. "At least we will not see the burden increasing," he said.
Oil prices had fallen by around $5 a barrel after hitting record highs above $55 last week, although the price rose again today amid signs of an electoral victory for U.S. President George W. Bush.
Economist Mr Stefan Muetze said German GDP growth, which is expected to be around 1.8 per cent this year, was still too weak to kick-start a recovery in the labour market. "The problem is that the global economy is already on a downwards path and momentum from exports will get weaker," he said.
"So a turnaround on the jobs market is slipping further into the distance."