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German unemployment rate hits record low in May

By Michele Maatouk

Date: Wednesday 31 May 2017

German unemployment rate hits record low in May

(ShareCast News) - The German unemployment rate fell to 5.7% in May from 5.8% in April, in line with expectations and marking the lowest rate since records began in 1992.
However, the number of people out of work declined by a seasonally-adjusted 9,000 to 2.54m, missing expectations for a 15,000 drop.

Detlef Scheele, head of the labour agency, said: "In line with good economic conditions, the labour market continues to develop favourably.

"The number of jobless people extended its decline in May and employment once again grew at a robust pace. Demand for labour also continues to be at very high levels."

Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said: "The German labour market's march into the unknown continues. These data are literally hitting records on a monthly basis at the moment. Vacancies rose further, albeit slightly less than the decline in April. Similarly, the decline in claims was somewhat slower than in recent months, but the underlying trend is solid.

"The main macroeconomic conclusion from these data is that wage pressures should continue to push higher. We have never seen a labour market this tight in Germany, and with inflation rising, workers will demand higher nominal wages to compensate."

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