German unemployment falls to new low

FRANKFURT AM MAIN: Joblessness in Germany fell in March to a new record low since reunification in 1990, official data showed on Thursday, as good times for Europe’s largest economy continue into the new year.

Some 5.3 per cent of the workforce was out of a job this month, according to preliminary seasonally-adjusted data from the federal labour agency, in line with analysts’ predictions.

That was 0.1 percentage points lower than in February and a new all-time low for post-reunification Germany.

In unadjusted terms, less indicative of underlying trends but more prominent in public debate, unemployment fell 0.2 points from February’s level, to 5.5 per cent.

Low levels of unemployment reflect strong economic performance in Germany, which booked growth of 2.2 per cent last year, its fastest pace since 2011.

A group of government economic advisors predicted earlier this month that the economy would expand even faster this year.

Fewer people out of work has meant more consumers with money to spend at home supporting the economy, as a broader global upturn has increased foreign demand for German products.

The flip side of the country’s status as a global export powerhouse — with exports outweighing imports by 245 billion euros ($302 billion) last year — is particular vulnerability to trade war. — AFP