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German Jobless rate in February Slightly Declined


01 marca 2018
watermark Economic news

The total unemployment rate in Germany for February came in lower than expected, as the employment rate in January reached a record high based on the data published on Wednesday. This highlights the stability of labor market supported by the increase in German consumption.


According to the data from the  Federal Labour Office, the seasonally adjusted jobless rate is down by  22,000 to 2.393 million which shows a greater decline of 15,000 based on Reuters poll. The office further mentioned that unemployment percentage remained unchanged by 5.4 in February, which is the lowest level after the German reunification dated 1990.


The strong job market is expected to continue supporting the growth driven by consumption in EU’s largest economy. Hence, the growth drivers are export rebound and the surge in firm investments. Another positive sign is the forecast of seasonally adjusted employment by the International Labour Organisation, showing an expansion of  44.54 million in January.


Moreover, household expenditure was the primary source of the country’s economic growth since above-inflation wage hikes high employment rate, improved job security and reduced borrowing costs shoppers’ budget. On Wednesday, the sentiment survey from the Gfk institute further indicates an optimistic tone among buyers slightly faded away in March, implying political issues that could influence household expenses.


The consumer sentiment indicator of the Gfk is based on the poll of 2,000 Germans approximately, dropped to 10.8 points heading this month versus 11.0 last month and this was the highest level in more than a decade. The forecast this March against Reuter's consensus outlook for the index has moved lower to 10.9.


Generally, the DIHK Chambers of Industry and Commerce predicts that Germany will perform better, as it will reach 2.7 percent in 2018 which is the strongest momentum since 2011.


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