ING Bank: Weakness in the German labor market seems likely to continue.

The Dutch International Group pointed out that the trend of the German labor market remains bleak. Although the number of unemployed people decreased in February, the unemployment rate remained at 6.3%. However, the absolute number of unemployed people is still higher than the politically significant number of 3 million, which is not good news. The job market is undergoing structural adjustments due to changes in demographic structure, industrial transformation, and the rise of artificial intelligence. It is expected that the labor market will continue to deteriorate this year. The further announcement of potential cost-cutting measures in the automotive and other industries, as well as the continued increase in bankruptcies, indicate that the situation will worsen before improving. However, the recovery of the German economy may help stabilize the labor market.