German Unemployment Sinks To Three-Year Low

The number of jobless Germans dropped further than expected in October, reaching its lowest level since November 2011. The robust German labor market appears to defy mounting worries about the health of the economy.



The German Federal Labor Agency (BA) on Thursday released unemployment figures for October, showing that 75,000 fewer people were without a job than in September. Compared with the same month a year ago, the figure was 68,000 lower.



According to BA data, a total of 2.733 million Germans were officially registered as jobless, marking an unemployment rate of 6.3 percent - down 0.2 percent month-on-month.



Adjusted for seasonal variations, the rate remained unchanged at 6.7 percent as unemployment sank by 22,000 people.



Attributing the decline to an autumn labor market upswing, BA chief Frank-Jürgen Weise said current "business uncertainties" were not affecting the jobs market.



On the back of gloomier forecasts for the global economy, a series of key German indicators, including business and investor confidence, have dropped significantly in recent months.



Analysts said the fact that Germany was escaping rampant unemployment prevalent among its eurozone partners, was the result of economic reforms initiated a decade ago.



"Thanks to the reforms of the past and current labor immigration from crisis-hit eurozone countries, the German job market continues to defy recent economic developments," ING economist Carsten Brzeski told the news agency Reuters. Apparently, businesses required less growth to keep employment stable, he added.



And Jörg Zeuner, analyst with German state-owned KfW bank, told the same agency that strong domestic consumption in the wake of recent wage hikes was stabilizing both the economy and the labor market.



uhe/ng (dpa, Reuters, AFP)