German Unemployment Declined for 12th Month in June

Discussion in 'Economics' started by ASusilovic, Jun 30, 2010.

  1. June 30 (Bloomberg) -- German unemployment fell for a 12th month in June as business confidence improved, putting Germany’s export-led economic recovery on a broader footing.

    The number of people out of work declined a seasonally adjusted 21,000 to 3.23 million, the lowest since December 2008, the Federal Labor Agency in Nuremberg said today. Unemployment was forecast to fall 30,000, according to the median of 29 estimates in a Bloomberg survey. The adjusted jobless rate remained at 7.7 percent.

    The German economy, Europe’s biggest, is showing signs of evading the worst of the euro region’s sovereign debt crisis, which has forced governments across the 16-nation bloc to step up spending cuts. Consumer confidence will hold steady next month, GfK AG said June 23, a day after the Ifo institute said its business climate index unexpectedly rose to the highest in two years.

    “The German labor market is a phenomenon -- the unemployment figures are already back close to pre-crisis levels,” said Joerg Lueschow, an economist at WestLB AG in Dusseldorf. “The situation should improve in the coming months” and unemployment could fall to below 3 million by the end of the year, he said.

    On an unadjusted basis, unemployment fell 88,200 to 3.15 million, according to the agency. It said the labor market improved on the back of the economic recovery.

    Yeah, I know, the world is going under. Sovereign debt crsisi, credit crisis, debt monetization, inflation / deflation, PIGS problems, stress tests...Germany doesn´t care and moves on...:cool:
  2. Good news for sure. But if @ 7.7% unemployment they are almost back to pre-2008 numbers, why was unemployment so high before the crash?
  3. Germany WAS very generous with its unemployment benefits. Not anymore...:)
  4. Time to buy. High employment is bad for business. If everybody is employed, job openings wouldnt get filled anymore leading to loss of efficiency of the labor market.