The German unemployment fell more than expected in February to a record low level, shows a new data. This highlights the strength of the labor market in the country that fuel consumption-driven economic growth. The data released by the Federal Employment Agency showed that seasonally adjusted unemployment has fallen by 22,000 to 2.393 million people.
This is a much larger drop than the forecasts of the analysts for decrease of 15,000 people.
When adjusted for seasonal factors, the rate remained at 5.4%, unchanged by the slight rise of 2,000 more jobs. Following strong economic growth of 2.2% in 2017, the government is predicting a 2.4% expansion this year.
The stable labor market is likely to continue to support the consumption-driven growth cycle in Germany, where export recovery and higher business investment have recently become additional engines of growth.
The country’s economy has been firing on all cylinders in recent months, boosted by robust appetite for German goods abroad, strong consumer demand at home and supportive policies from the European Central Bank.
German unions have sought to capitalize on the boom times by pushing for huge salary increases in wage talks with employers.