German unemployment will average 150,000 more this year than in 2004, although the jobless total will fall in the second half of 2005, a German newspaper said on Sunday, citing the government's annual economic report. Berliner Zeitung said the rise in average annual unemployment was principally because those previously on social assistance who are capable of working have been added to the jobless statistics.
Almost 4.4 million people were without a job on average in 2004.
However, the newspaper said in an article to appear in its Monday edition that the government expected a substantial fall of around 200,000 in the jobless total in the second half of the year to reach 4.3 million.
Economy Minister Wolfgang Clement is due to present the report on Wednesday. According to a draft copy of the report seen by Reuters on Friday, the government is assuming economic growth of 1.6 percent. It had previously worked with 1.7 percent, also the level of growth in 2004.
The draft showed the government is, however, "increasingly worried" by the euro's high exchange rate against the dollar and fears that it could undermine the state's efforts to boost Europe's largest economy through structural reforms.
The government also expresses unease about current European Central Bank interest rates, according to the draft.
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