The number of unemployed in Germany fell in June by a larger-than-expected 49,000 month-on-month in seasonally adjusted terms as the soccer World Cup gave the labour market a kick.
The fall took the adjusted jobless total to 4.542 million, good for a rate of 10.9 percent, Federal Labour Office data showed on Thursday. A Reuters poll of economists had pointed to a fall of 30,000, for an adjusted rate of 11.0 percent.
The fall followed other positive news from Europe's largest economy this week, with the Ifo institute's gauge of business morale scaling its highest level in over 15 years in June and another survey showing consumer sentiment set to climb in July.
"These are very, very good figures," Ulrike Kastens, economist at Sal. Oppenheim said of the unemployment data.
Labour Office deputy head Heinrich Alt said the Office had expected some 50,000 jobs to be created by the tournament, which Germany is hosting. "We've seen this effect confirmed," he said.
However, the Office said it still was too early to talk of a change in the trend in the labour market. High unemployment has dampened domestic economic activity in Germany.
Employment, calculated according to International Labour Organisation methodology, rose by a seasonally adjusted 43,000 to 38.725 million in May, the Federal Statistics Office said. In unadjusted terms, the number of jobless fell in June by 138,000 to 4.397 million, giving a rate of 10.5 percent.
The figures will make positive reading for Chancellor Angela Merkel's government, which has accorded top priority to tackling unemployment. The ruling coalition has seen its popularity wane recently as it struggles to agree on economic reforms.
MANUFACTURING ORDERS RISE German manufacturing orders increased strongly in April on robust foreign and domestic demand and growth looks set to continue, the Economy Ministry said on Thursday.
Orders rose by 4.1 percent in April on the month in seasonally adjusted terms, the ministry said, a gain which cancelled out an equivalent decline in March. The gain was the sixth in eight months and the biggest since the end of 2004.
The rise in industrial orders chimed with other positive reports on the economy this week, with unemployment falling and business morale rising in June. A separate survey showed that German consumer sentiment is set to climb in July. Domestic orders rose by 2.5 percent in April, while foreign orders jumped by 5.7 percent, the data showed.
Comments
Comments are closed.