German unemployment hits lowest level in 20 years

| September 30, 2011

Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.

The countrya��s unemployment rate fell from Augusta��s rate of 7% to 6.6%.

Unemployment now stands at 2.79 million a�� the first time since 1992 that the jobless total has been below 2.8 million.

It was also much better than economists had expected.

The countrya��s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the a�?Kurzarbeita�? scheme, introduced by the German Government, designed to prevent mass redundancies.

Last year, Germanya��s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.

Many economists believe that Germany’s economic recovery appears to have enough a�?domestic staminaa�? to prevent a recession.”

However, despite the strong data, the economy, which is the euro zonea��s largest, continues to suffer amid the ongoing debt crisis.

Germany, which has been regarded as Europea��s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.

Statistics office Destatis recently revealed German exports fell more than expected in July.

According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.

The sharp fall in exports will be of grave concern for the countrya��s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 a�� much sooner than many of its counterparts throughout the world.

The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.

It expects Germanya��s economy to grow 2.7% this year and 1.3% in 2012.

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