German unemployment fell less than expected in November, data showed today, but economists expected the labour market in Europe's largest economy to show further improvement in the coming months.
The number of unemployed in seasonally adjusted terms fell by 9,000 from the previous month, leaving the jobless rate unchanged at 7.5 per cent, data from the Labour Office showed. A poll had pointed to a drop of 20,000.
"I would have expected a stronger decline after the strong upturn. Nevertheless the recovery is continuing," said Lothar Hessler at HSBC Trinkaus. "The positive trend will likely continue."
On an unadjusted basis, the number out of work fell by 14,000 to 2.931 million, making this November the most positive one since 1991, the Office said.
Germany has seen an abundance of positive economic data in recent months. Last month, unadjusted unemployment fell below the 3 million mark for the first time since November 2008 and was down from levels of 5 million in 2005.
Detailed third quarter gross domestic product (GDP) data released last week also showed a more balanced recovery taking hold, with steady growth in private consumption. Economists say a better job market has encouraged Germans to spend.
Business sentiment as measured by the Ifo institute economic think tank also improved in November to its strongest level since 1991, and consumer morale rose more than expected for the sixth month in a row, market researchers GfK say.
The strong recovery has helped pull the euro zone to improved growth in recent quarters, but there are also concerns it may be leaving other struggling economies behind.
Reuters