Stable and tight German labor market expected in July

German's unemployment rate in June was 6.4%. The number of unemployed in Germany in July is expected to have declined by 5 thousand, following the small drop of 1,000 in June. Therefore, the unemployment rate is expected to remain stable at 6.4%, estimates Societe Generale.

The overall conditions in the German labor market remain positive and vacancies continued to rise to an all-time high of 562 thousand in June. However, the slow euro area recovery and increased uncertainty from Greece, has led to a moderation in employment growth. The labor force has been growing since 2011, but headwinds are likely to grow due to aging in the coming years, says Societe Generale.