German Unemployment Drops, But Eurozone Still Not In the Clear
Germany withstood the financial crisis in the eurozone better than most, with comparatively healthy growth. German Chancellor Angela Merkel still voiced concerns, however, noting that there is work to be done toward stabilizing and continuing the country’s economic improvement. According to Bloomberg, unemployment showed further improvement in Germany in December, dropping and indicating an improvement in job creators’ economic confidence.
The unemployment decrease amounted to 15,000 fewer unemployed individuals, leaving 2.965 million still in need of jobs, per information from the Federal Labor Agency in Nuremberg, reported by Bloomberg. Inflation, which has been low in the eurozone, continued to slow to 0.8 percent.
The German Bundesbank told Bloomberg that gross domestic product in Germany would likely see positive action in the near future, but the European Central Bank gave warning that the euro looked likely to lose strength soon due to low inflation and the slumping economic situation in most of the eurozone.
Bloomberg reports that the unemployment decrease in Germany exceeded expectations by 14,000, with the average estimates amounting to 1,000 extra jobs for December. Regionally, 5,000 of the jobs were in west Germany, and 10,000 were in the east. The adjusted jobless rate has remained flat at 6.9 percent, decreasing in areas but remaining stable countrywide.
“A robust jobs report for the end of the year provides further support for a strong finish to 2013 from consumer spending. Strong Labor-market data raises the chances of stronger wage growth in 2014 and thus higher consumption,” Christian Schulz, an economist based in London, said to Bloomberg.
Though Germany has shown some improvement in certain economic indicators, other countries like Greece, Italy, and Spain continue to be a drag on the eurozone. Spain recently showed some slight expansion in the service and private sectors, but the improvement has proved rather modest.