German unemployment up to 6.7% on seasonal factors

The country’s unemployment rate fell to its lowest level in nearly seven years, at 5.3 percent in the fourth quarter of 2015, surprising economists who had forecast an increase to 6.1 percent, from 6 percent in the third quarter. The 10.5% unemployment rate for the Eurozone in November remains painfully high, but there’s a clear downward bias over the last several months.

That’s an increase of 239,000 compared with December; but was 111,000 lower than last January.

Irish State Minister for Business and Employment, Ged Nash, welcomed these new unemployment figures, saying that these month on month decreases are “no accident or lucky chance”.

Anne Bonniface, senior economist at Westpac, also said it was unusual to see employment and participation head in opposite directions from quarter to quarter.

The figure was 8.8% in December 2015, and 10.1% in January 2015.

The figures show that the overall unemployment rate has fallen from the 12.2% figure recorded in January 2014. Today’s monthly unemployment report will likely provide support for expecting the broad macro trend of moderate growth is sustainable.

German unemployment fell by more than expected in January, with the jobless rate sinking to a new record low, pointing to steady growth in Europe’s largest economy despite an economic slowdown in emerging markets. Roughly 43 million people had jobs.

“Hiring intentions are very strong at the moment, we’ve seen that indication that employers are wanting to take on more staff”, he said. That brings to 116,300 and 70,400 the number of men and women respectively now classed as unemployed. Spain, however, saw the biggest fall in unemployment rates compared to a year ago, while Finland saw the biggest increase.