German unemployment jumped in January to 8.6 percent, or 3.617 million people, AP quoted official data as showing. The Federal Labor Office said 342,000 more people were unemployed compared with December, when the jobless rate was 7.8 percent, with unusually early and cold winter weather contributing to a loss in jobs and productivity. Seasonally adjusted, the unemployment rate increased to 8.2 percent from 8.1 percent. The office said the effects of the economic crisis were acute, though considering the massive decline in production, it has so far only had a moderate affect on the labor market. The office said German short time work programs continued to stabilize employment levels. The German government set up a program that compensated companies for keeping employees on shorter work weeks and less pay to respond to drops in demand.
