German Unemployment at a 15 1/2 Low.

German unemployment has fallen to its lowest level since August 1992 of 7.8percent, which is better than the median forecasts of 8 percent as revealed by a report by Federal Labor Agency in Nuremberg today, whilst across the European Union unemployment remains at a record low of 7.1 percent.

This was due to the increased demand for cars, sports shoes and factory machinery meant companies had to boost their workforce in order to deal with the demand.

Stephan Riecke, an economist at BHF-Bank AG in Frankfurt said that the resurgence of the German labour market thus far is astonishing although “the problems stemming from the financial crisis in the U.S. have not reached German manufacturing yet.”

The position of the labour market adds weight to the argument that the German economy is proving resilient to global turmoil and economic slowdown, despite the record oil price and the height of the euro against the dollar.

Consumer confidence has risen for the first time in three months in April, and with more people on work as well as higher wages rising above inflation the increased household spending will help revive the economy.

Similarly business confidence also rose for the quarter due to the growth in exports.

Volkswagen the country’s largest carmaker, is planning to hire 8,500 workers this year, with over 4,000 of them in Germany, whilst Puma is set to add another130 new jobs to its German workforce as German industrial production has been boosted by the growth experienced in the construction industry.

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