German unemployment fell far more than expected in April, declining by a seasonally-adjusted 68,000 in the latest sign Europe's largest economy is waking from its winter slumber.
The decline, much sharper than the 10,000 decrease forecast by economists polled by Reuters, pushed the adjusted jobless rate down to 7.8 per cent from 8.0 per cent in the prior month, the Federal Labour Office figures showed.
"The German 'job miracle' keeps going," said Heinrich Bayer from Postbank. "That's an incredibly strong decline in the number of people without jobs, especially considering the massive economic decline we've had."
Germany exited its deepest post-war recession in the second quarter of last year but the recovery stalled through the winter when harsh weather disrupted business activity - particularly in the construction sector.
Recent economic indicators, however, show the economy is picking up steam again. Business morale surged in April to its highest level in nearly two years, surpassing even the most optimistic forecast.
And on Tuesday the GfK market research group's survey of German consumer sentiment - a barometer for worries over the labour market - showed morale is likely to rise to a six-month high in May as households' view of the economy and income expectations brighten.
Figures released earlier by the Federal Statistics Office showed the number of people in work in Germany rose by 12,000 on the month in March in seasonally adjusted terms.
The jobless data showed the headline unadjusted unemployment total fell by 162,000 to 3.406 million, the Labour Office said.
Reuters