Germany’s jobless rate plunged more than predicted in April as its economic recovery continues to gather momentum.
The number of jobless persons declined 25,000 to 2.872 million, reported the Federal Labor Agency on Wednesday. This was more than the average decline 10,000 in a Bloomberg survey of 25 economists. The adjusted unemployment rate remained static at 6.7 percent, which is the lowest figure in 20 years.
The number of jobless persons declined by 11,000 in Eastern Germany, while the western part saw jobless numbers shrink by 14,000.
Germany has gained from the economic recovery in the euro zone and the extremely low borrowing costs in the economic bloc.
“Germany is well known for its exports but we also see a very positive trend for domestic demand,” said Heinrich Bayer, a Bonn-based economist at Deutsche Postbank AG, told Bloomberg. “That’s good news for the country’s labor market and, of course, for the economy in the entire euro area.”
Germany’s unemployment rate looks favorable compared to the euro zone’s 11.9 percent (March figures) jobless rate. The Europe’s largest economy expanded 0.4 percent in the fourth quarter of 2013, which is two times faster than the euro zone. Germany is due to release its first-quarter economic growth report on May 15.
Consumer confidence in the county remains high, with data released early today showing that retail sales rose 1.3 percent in the first quarter from the fourth quarter of 2013. The data, which was released by VDMA, also indicated that orders for plant and machinery plunged 6 percent in March, while domestic orders increased 13 percent. However, foreign orders plunged 13 percent. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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