MONEY MASTER

Quick Summary German unemployment crossed 3 million , the highest level in 12 years Jobless rate rose to 6.6% , highlighting weak labour momentum GDP grew 0.3% in Q4 , beating expectations despite trade turmoil Inflation ticked up in several states , keeping price pressures in focus What’s Happening in the Labour Market Germany’s unemployment climbed sharply at the start of the year, underscoring the  lagging impact of recent economic stagnation . Unemployed:   3.08 million  (+177,000 vs December) Unemployment rate:   6.6%  (seasonally unadjusted) Seasonally adjusted rate:   6.3% , unchanged Labour office head  Andrea Nahles  said momentum remains weak, with seasonal factors driving much of the rise. Economy Holds Up Better Than Expected Despite job market softness,  Germany’s economy showed resilience . Q4 GDP:   +0.3% q/q  (vs 0.2% expected) Annual growth:   +0.2% , confirming initial estimates The statistics office said the ...

Malaysia maintained its decade-low  unemployment rate of 3%  in the  third quarter of 2025 (3Q2025) , but  over one-third of graduates remain underemployed , according to the  Department of Statistics Malaysia (DOSM) . Skill-related underemployment — referring to  degree and diploma holders working in semi- or low-skilled jobs  — edged up to  1.96 million people , representing  35.5% of all employed graduates . Overall, the  number of unemployed Malaysians fell 0.2% to 519,900 , as the  labour force grew 0.7% to 17.49 million , with  employment rising to 16.97 million . The  labour force participation rate  also improved slightly to  70.9% . Meanwhile,  time-related underemployment , or workers seeking more than 30 hours per week, declined  5.5% to 133,300 . By state,  Putrajaya recorded the lowest unemployment rate at 1.4% , followed by  Pahang (1.7%)  and  Selangor (1.8%) , which a...

The Reserve Bank of New Zealand (RBNZ) released a pessimistic economic outlook on Tuesday, highlighting challenges such as rising unemployment, weakened domestic activity, and delayed business investments due to financial pressures. In its semi-annual Financial Stability Report, the RBNZ pointed to reduced demand due to subdued global growth and high interest rates. Businesses are reporting lower profitability and subdued demand, compounded by cost pressures that are impacting trade. Key takeaways from the report include: Rising Unemployment : Increasing unemployment rates are creating acute financial difficulties for some households, according to the central bank. Economic Contraction : The RBNZ expects that New Zealand's economy shrank in the third quarter, as previous cash rate hikes were implemented to curb demand and reduce inflation. Interest Rate Cuts : Since August, the central bank has cut the official cash rate by 75 basis points, with the goal of supporting demand recove...

Unemployment in Gaza has soared to nearly 80% since the Israel-Hamas war began, plunging the enclave's economy into near-total collapse, according to the International Labour Organization (ILO) . Economic output in Gaza has contracted by 85% , leaving almost the entire population of 2.3 million in poverty . The war has caused unprecedented devastation in Gaza and the West Bank , disrupting the labor market and economy. Before the crisis, Gaza’s unemployment rate was already high at 45.3% , but it has now skyrocketed as many residents have lost their jobs or been forced into irregular work. The West Bank has also been affected, with unemployment averaging 34.9% and the economy shrinking by 21.7% over the past year. The ongoing conflict, which began after a Hamas-led attack on October 7 , has caused widespread destruction in Gaza, damaging or flattening two-thirds of its pre-war structures, according to UN satellite data . The socio-economic impact of the war is expected to...

Cracks are beginning to show in the eurozone’s labor market , prompting the European Central Bank (ECB) to consider speeding up interest rate cuts. Despite record-low joblessness following the inflation shock, policymakers are now seeing early signs of a slowdown that has pushed them to back another reduction in borrowing costs this week. While the ECB doesn’t have the same dual mandate as the Federal Reserve —which targets both price stability and full employment—a weakening labor market could still significantly impact the ECB’s inflation outlook. With major companies like BASF SE and Thyssenkrupp AG cutting staff, some officials fear a deeper deterioration that could rattle a region already on the brink of recession. Economist Soeren Radde from Point72 expects the ECB to begin cutting rates this month and continue doing so, noting that the key concern is the labor market . ECB President Christine Lagarde , who in July cited the strength of the jobs market as a reason for cautio...

Austan Goolsbee , President of the Federal Reserve Bank of Chicago , emphasized on Thursday that interest rates need to come down significantly over the next 12 months . Goolsbee highlighted that while inflation has cooled and is nearing the Fed’s 2% target, the central bank’s focus has now shifted to maintaining stability in the job market , where the unemployment rate currently sits at 4.2% . In an interview on WBEZ , Goolsbee stated, "Rates need to come down over the next 12 months by a lot," reiterating that the Fed is now concentrating on preventing further increases in unemployment while keeping inflation under control. Last month, the Federal Reserve cut interest rates by a half percentage point , marking its first rate reduction since the pandemic began. This larger-than-expected move was aimed at supporting the slowing labor market . As the November Fed meeting approaches, officials are expected to implement smaller, quarter-point cuts , though the extent of any red...

US weekly jobless claims rose marginally last week, with initial claims for state unemployment benefits increasing by 6,000 to a seasonally adjusted 225,000 for the week ending Sept 28, according to the Labor Department . Economists had forecast 220,000 claims for the week. Despite the moderate increase, claims remain consistent with a stable labor market , characterized by low layoffs. However, this stability is expected to be temporarily disrupted by external factors such as Hurricane Helene , which caused significant damage across six US states , and ongoing strikes at Boeing and US ports . While striking workers are ineligible for unemployment benefits, their actions could lead to temporary layoffs throughout the supply chain. Boeing has already announced temporary furloughs affecting thousands of workers, further complicating the labor market outlook. The number of people receiving benefits after an initial week of aid, known as continuing claims , fell by 1,000 to 1.826 m...

This week, global attention will shift to two major events: the release of critical US economic data and Xi Jinping's policy speech in China. Following the US Federal Reserve’s 50-basis-point rate cut on Sept 18, investors will focus on economic indicators that reveal the strength of the US economy , particularly as concerns over the labor market grow. The highlight will be the US non-farm payrolls (NFP) report for September, due on Oct 4 . Economists expect 140,000 jobs to have been created in September, down slightly from 142,000 in August , with the unemployment rate anticipated to hold at 4.2% . A weaker-than-expected result could further signal a softening US economy . On Oct 1 , the Institute of Supply Management (ISM) will release its survey on US manufacturing activity . The Manufacturing Purchasing Managers' Index (PMI) for September is projected to be 47.6 , marking the sixth consecutive month of contraction . However, a consistent reading above 42.5 generall...

German unemployment increased by 17,000 in September, exceeding economists' expectations of 13,500 , according to a Bloomberg poll. Despite this rise, the unemployment rate remained steady at 6% . The increase signals that the economic slowdown is starting to affect the labor market more significantly. While German companies have been hesitant to cut staff due to concerns about a shortage of skilled workers, there are now growing signs of a cooling labor market . Employment growth has slowed, and the number of job vacancies fell by about 15% in the second quarter compared to the previous three months. Recent business surveys from S&P Global and the Ifo institute have also shown an increasing willingness among firms to reduce staff. According to Andrea Nahles , head of the Federal Labour Agency , the usual fall revival in the labor market is progressing more slowly than expected.

China’s housing market crisis, which has wiped out an estimated US$18 trillion (RM75.86 trillion) in household wealth, remains the biggest obstacle to achieving the country's 5% growth target . Most economists in a recent Bloomberg survey agree that ramping up the government's housing rescue package offers the best chance to propel growth and stave off a prolonged economic slowdown. Despite China's efforts to revive the property market with a 300 billion yuan (RM179.29 billion) program to help firms buy unsold homes from developers, progress has been slow. Only 29 out of over 200 cities have engaged in the plan, well below expectations, with unemployment rising and youth joblessness hitting new highs in August. The real estate slump, which has lasted for years, has led to millions of job losses, hurt consumer confidence, and reduced demand for products like steel. Analysts argue that larger-scale intervention is necessary, with estimates suggesting a one trillion to ...

US retail sales saw an unexpected increase in August, fueled by strong online sales that offset a decline in receipts at auto dealerships. This data suggests that the economy remains on firm footing heading into the third quarter. The Commerce Department reported on Tuesday that retail sales were slightly stronger than initially estimated in July, reinforcing optimism about the economy's strength. Combined with a drop in the unemployment rate last month, this development challenges market expectations for a half-percentage-point interest rate cut by the Federal Reserve on Wednesday. "There does not appear to be any reason for Fed officials to start with a larger 50 basis points rate cut because whatever stress exists in the labor market isn't translating into weaker economic demand," said Christopher Rupkey , chief economist at FWDBONDS. "If this is an economy on the brink of recession, consumers certainly don't see it." Retail sales rose by 0.1% in A...

Canada's economy experienced an unexpected setback in June, losing a net 1,400 jobs, contrary to analysts' expectations of a 22,500 job gain. This brought the unemployment rate to a 29-month high of 6.4%, exceeding the anticipated 6.3%. Key Points and Highlights: Unexpected Job Loss : Canada lost a net 1,400 jobs in June. Rising Unemployment : The unemployment rate rose to 6.4%, higher than the forecasted 6.3%. Highest Since 2022 : The jobless rate is at its highest since January 2022, excluding pandemic years. Youth Unemployment : Youth unemployment increased by 0.9 percentage points to 13.5%, the highest since September 2014, outside of the pandemic period. Wage Growth : Average hourly wage growth for permanent employees accelerated to 5.6% annually, the fastest since December. Labor Market Cooling : Bank of Canada Governor Tiff Macklem noted the labor market had cooled, suggesting economic growth and job creation could continue without significantly impacting the 2% inflatio...