Germany’s unemployment rate plunged to a record-low as investors and businesses expressed confidence about the growth prospects of Europe’s biggest economy.
The number of jobless persons declined by 14,000 to 2.87 million in November, reported the Nuremberg-based Federal Labor Agency. Economists surveyed by Bloomberg News had expected the numbers to drop by 1,000.
The adjusted jobless rate stood at 6.6 percent, the lowest level ever since records started being kept over two decades ago. Germany’s economy rebounded in the third quarter while investor and business sentiment both rose in November after the European Central Bank boosted stimulus in the euro zone.
“The German labor market is running very close to full employment and shows no signs of significant slowdown in spite of slower growth,” Evelyn Herrmann, a London-based European economist at BNP Paribas SA, told Bloomberg News.
Unemployment rate declined 9,000 in western part of the country while the eastern region reported a drop of 5,000. The news sent the euro tumbling 0.3 percent to trade at $1.2468 as of 11:03 a.m. Frankfurt time.
Private consumption rose 0.7 percent in the quarter through September while exports surged 1.9 percent, resulting in a 0.1 percent economic growth, reported the Federal statistics office on Nov. 25.
Meanwhile, French unemployment claims touched a new record, highlighting the failure of President Francois Hollande to initiate strong policies to revive economic growth. The number of those out of work in France rose 28,400 to 3.46 million in October, reported the Labor Ministry.
During Hollande’s 2 ½ year reign, the economy has shrunk save for one quarter as the government implemented austerity measures. Hollande was recently quoted in the mainstream media as saying he will not seek reelection if he fails to solve the unemployment problem. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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