Pantheon Macro: Germany’s Robust July Job Market Might Face Ephemeral Resilience

Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics, said the German labor market may not continue to improve.

The seasonally adjusted number of unemployed in July fell slightly from the previous month, which was lower than the 20,000 increase expected by the market.

“This is good news, but we are skeptical that this represents the beginning of a sustained improvement in the labor market,” he said.

He pointed to stagnant economic growth in Germany, with subdued output in key sectors such as industry and construction.

So the vibrant job market in July may have been short-lived.