German unemployment fell for the eleventh month running in May, data showed today, as Europe's largest economy pursued a path towards durable growth by adding jobs in struggling a euro zone market.
Joblessness declined by a seasonally adjusted 45,000 month-on-month, far more than expected as labour reforms paid dividends and a weaker euro boosted exports, though analysts warned the spreading debt crisis in the single currency zone might weigh on the German recovery in the coming months.
The decline pushed the adjusted jobless rate down to 7.7 per cent in May from 7.8 per cent in the prior month, Federal Labour Office data showed.
Economists polled by Reuters had forecast the total would decrease by 20,000
"The labour market is looking extraordinarily robust," said Stefan Schilbe, an economist at HSBC Trinkaus. "It's profiting not just from the seasonal pick-up, but also the fact that exports are doing well.
"There are also signs that companies are not laying people off from shortened hours, but that they're taking people on full time again. That's positive and should result in improved consumer spending," he added.
Earlier today, data showed that retail sales rose modestly in April as consumers upped their spending.
The headline unadjusted unemployment total fell by 165,000 on the month to 3.242 million, the Office said.
The government's subsidy scheme for short-term working, known as "Kurzarbeit", has helped Germany weather its worst postwar economic recession with only a modest rise in unemployment.
Germany exited its recession in the second quarter of last year and recent economic indicators have beaten forecasts.
Industrial output and orders surged in March, while exports rose at their fastest rate in nearly 18 years, surpassing even the most optimistic predictions.
Reuters