(MENAFN) Germany’s labor market faced a setback in September, as unemployment climbed by 14,000, reaching a total of 2.98 million, according to reports from the country’s employment authority. Analysts had anticipated a smaller increase of just 8,000 jobless individuals.

Despite the rise in unemployment, the seasonally adjusted jobless rate held steady at 6.3% for September. At the same time, the number of vacant positions in businesses fell by 66,000 compared to the previous month, totaling 630,000 openings.

The broader economy also showed signs of fragility. After recording 0.3% growth in the first quarter, the German economy contracted by 0.1% in the second quarter, highlighting ongoing weakness in the manufacturing sector.

Economic experts note that higher interest rates, cyclical vulnerabilities, and structural shifts continue to challenge Germany’s growth prospects. The government had pledged to stimulate the economy through significant increases in infrastructure and defense expenditures, but the anticipated effects of these measures are taking longer to materialize than initially expected.

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