German Joblessness Extends Decline as Growth Seen Picking Up

  • Unemployment fell by 5,000 in November in line with forecast
  • Country’s jobless rate unchanged at record low of 6.0%

German unemployment continued to decline in November as Europe’s largest economy is poised to accelerate toward the end of the year.

The number of people out of work fell by a seasonally adjusted 5,000 to 2.658 million, data from the Federal Labor Agency in Nuremberg showed on Wednesday, in line with a forecast in a Bloomberg survey. The jobless rate remained unchanged at 6 percent, matching the lowest level since reunification.

Germany’s economic expansion will probably accelerate “considerably” this quarter after a temporary lull in the three months through September, with high capacity utilization likely to stimulate investment in machinery and equipment, according to the Bundesbank. Unemployment has been on a downward trend since 2009.

The number of people out of work fell by some 2,000 in western Germany and decreased by about 3,000 in the eastern part of the country, the labor agency said.

The country’s labor market has proved remarkably resilient to political uncertainty, weaker global trade and an influx of migrants. Unemployment will probably fall until well into the next year, according to a study from the Nuremberg-based Institute for Labor and Employment Research. The Ifo institute in Munich predicts German companies will continue to look for more workers.

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