Latest data released by the Federal Employment Agency - 5 January 2021
- Prior -39.0k; revised to -40.0k
- Unemployment rate 6.1% vs 6.2% expected
- Prior 6.1%
German unemployment surprisingly fell once again last month, with the unemployment rate keeping steadier at 6.1% despite lockdown measures at the end of last year.
As mentioned before, the furlough program and short-time work schemes have made it difficult to get a good read on labour market conditions and that applies here as well.
On the surface at least, one can take some added comfort in terms of economic data optimism. However, labour market strains should persist given the extension of lockdown measures well into the new year - set to be extended to 31 January this week.
