German unemployment rises less than expected in June

BERLIN (Reuters) -The number of people out of work in Germany rose less than expected in June, labour office figures showed on Tuesday, as the labour market remains in the grip of an anaemic economy.

The office said the number of unemployed increased by 11,000 in seasonally adjusted terms to 2.97 million. Analysts polled by Reuters had expected a rise of 15,000.

The number of unemployed people in Germany is approaching the 3 million mark for the first time in a decade.

Germany is set to gradually raise its hourly minimum wage to 14.60 euros ($17.10) by 2027, which can make it less attractive for companies to take on staff.

Germany's job market has been squeezed by two years of economic contraction, even against a backdrop of long-term labour shortages, adding to pressure on conservative Chancellor Friedrich Merz, who has vowed to turn around the economy.

The seasonally adjusted employment rate remained unchanged in June on the previous month at 6.3%.

"The labour market continues to show signs of economic weakness. Unemployment continues to develop unfavourably. And companies remain reluctant to hire," said labour office head Andrea Nahles.

There were 632,000 job openings in June, 69,000 fewer than a year ago, showing a slowdown in labour demand, the labour office said.

($1 = 0.8538 euros)

(Reporting by Miranda Murray and Holger Hansen, editing by Rachel More)

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