November Records Fall in German Unemployment

On the back of a steadily recovering economy, and the fact that the Government had fiercely discouraged firing, the unemployment rate for the month of November recorded a fall all throughout Germany. As confirmed by the figures shared by Nuremberg-based Federal Labor Agency, the number of employed people fell 7,000 to 3.42 million for November, leading to the month recording an unemployment rate of 8.1%, compared to last month's recorded figure of 8.2%.

Germany has managed to race ahead of other European nations in terms of recovery from the recession. The country's economy had started to grow as early as the second quarter, and recorded a 0.7% growth in the third quarter. Business confidence across the country, as per the IFO institute's business confidence index, surged much more than the economists had expected, to hit a
15 month high in november.

"Even if economic growth is weak, unemployment will continue to fall at a slow, progressive rate, helped by expanding orders and a generous labor-market subsidy. Small and medium companies weathered the lean months and are not likely to drop staff as recovery broadens", shared Francisco Vidal, a Madrid-based Economist from Intermoney Valores SV SA.

The decline in Germany's rate of unemployment has come just in time for the Government's added effort to ensure that the economy recovers faster and is not hurt during the sensitive recovery phase. Both the factors, experts believe, will help the economy recover faster and ensure its stability.