Labour market: unemployment rateStable unemployment and employment. The unemployment rate has been stable at 3.7% y/y in August for five months (+0.7 pp compared to the low point in H1 2023). Job creation in the public sector is offset by losses in industry. According to the Federal Employment Agency, companies remain reluctant to hire, making it difficult to find work – a finding corroborated by the IAB and IFO employment surveys.
InflationPersistent inflation. Harmonised inflation reached 2.4% y/y in September (+0.3 pp m/m, preliminary figures, the highest since February), driven by services (+3.4% y/y, +0.3 pp m/m). The rise in negotiated wages (+4.4% y/y in September) is supporting this persistent inflation in services. In addition, the decline in energy prices is slowing (-0.7% y/y, after -2.4% in August).
