German unemployment eased for a second month as the economy slowly recovered from the coronavirus pandemic. A drop of 9,000 in August left the total number of jobless people at 2.92 million, the Federal Labor Agency said Tuesday. At the same time, millions of workers remain furloughed, with around 37% of companies still making use of government wage subsidies, according to the Ifo Institute.
Even as the labor market improves, Germany’s recovery will likely take some time. While industrial production and retail sales have roared back to life, some surveys are signaling weakening momentum and many companies have warned about their profits.
Last week, the government agreed to provide enhanced job-preserving subsidies until the end of 2021, allocating around 10 billion euros ($12 billion) more to help Europe’s biggest economy. Economy Minister Peter Altmaier is due to present new forecasts later on Tuesday that are said to show a smaller than previously feared slump in 2020, and weaker than anticipated growth next year.