Unemployment rate reaches 5.8% in Germany; lowest in 25 years

Unemployment rate reaches 5.8% in Germany; lowest in 25 years

The number of unemployed in Germany fell by a seasonally adjusted 13,000 from a month earlier to 2.54 million, a report from the Federal Employment Agency of Germany alerts. The newly released figure is the worst in 25 years, since the reunification of the country. The government agency had foretasted for a drop of 1,000 from the previous month. According to figures published by the Federal Agency for employment on November 2, the number of job seekers fell by 68,000 in October compared to September, lowest since June 1991.

Compared to the figures in September, the jobless rates in October fell by 68,000 to 2.54 million, which is 109,000 less than that in October 2015, according to the figures of the Nuremberg-based agency. The unemployment rate went down by 5.8 percent in October, 0.1 percent less than that in September. After a significant rise in January when it had reached 6.7 per cent of unemployment had declined every month until June (5.9%). It has shown signs of betterment in July and August. A new downward trend was observed in September, but economists, who feared the consequences of the referendum on the Brexit, expected a less significant change in October.

In September, the German economy has created 29 000 new jobs, 371 000 on a year. According to Jörg Zeuner, Chief Economist at KfW, the number of new jobs could exceed 400,000 by 2017. The unemployment rate is lowest at the rich southwestern Länder:  3.2% in Bavaria, 3.6 percent in Baden-Wuerttemberg. The lower rankings are in the cities of Berlin and Bremen, where the unemployment rate is respectively 9.2% and 10%.

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