German Unemployment Reaches 14 Year Low

The German rate of unemployment has fallen to its lowest level in over fourteen years off the back of ongoing economic growth in spite of adverse global externalities, according to official figures released today.

In figures released by the Federal Labour Agency today, unemployment in the German economy was shown to have fallen by around 8.8%, a real decline of 50,000 to just under 3.7 million for the month of September. The fall sees unemployment within the Germany economy fall to its lowest rate since early summer 1993.

The fall in unemployment was larger than many analysts had previously expected, which should eventually help to boost German consumer confidence and spending on the high street.

The growth in employment figures has been welcomed by German investors, and it has been attributed to strong demand within Germany and abroad. However, the ongoing strength of the euro could eventually have a negative effect on trade exports outwith the eurozone region, as exports become more expensive.

Many have received the figures as signs of a wider recovery in the German economy, which has seen weak growth and widespread unemployment over the last few years compounding the misfortunes of the underlying European economy.

The perceived turnaround in Europe’s largest economy will also be good news for the eurozone economy, given the extent of impact German performance has on that of the regional economy as a whole. With the fortunes of the German economy apparently on the up, and French growth also on the agenda, this could spell further growth for the Eurozone economy over the coming year.

The news has been well received on the DAX through early afternoon trading, with investors buoyant in response to the promise of a more stable labour market and recovery of the German economy. The DAX was up by 44.43 points by the middle of the afternoon, trading at 7848.6 with a few hours remaining.

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