Unemployment in Germany fell more than expected in January and the jobless rate is now at its lowest level since March 1992, it was 7.4 percent when adjusted for seasonal factors such as bad weather.
The head of the Federal Labour Office Frank-Juergen Weise said “Jobs paying into the social security system and overall employment increased considerably and the demand for workers continued to increase.”
The figures fuelled hopes that consumer spending will help underpin Germany’s economic recovery.
However, the rate when not adjusted for those seasonal factors – which is the headline figure used in Germany – increased sharply in January. It rose to 7.9% from 7.2% in December.
Continued job growth is a critical element in economists’ forecasts for a consumer spending rebound in Germany this year, since recent data suggest already employed households are not confident enough yet to finance more purchases by dipping further into their savings.