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FRANKFURT (MNI) – The growth in Germany’s seasonally adjusted
employment level continued to slow in August, the Federal Statistical
Office reported on Thursday.

Although rising for the seventh consecutive month, the number of
employed managed only a modest 2,000-person increase from July,
resulting in an employment level of 40.317 million, as measured by the
International Labour Organisation (ILO).

In non-seasonally adjusted terms, the employment level rebounded
0.2% on the month, or +82,000, to end at 40.281 million, its highest
level since December 2009.

A number of forward-looking indicators published recently have
pointed to a positive outlook for the German labour market, suggesting
that the upward trend in employment is likely to continue for some time.

The Ifo institute’s employment barometer, released at the end of
August, stabilized near multi-year highs, pointing to a favourable
outlook for the labour market.

A separate Ifo survey released later reported that 87% of German
firms hope to take on additional staff over the next year compared to
only 4% who were looking to cut jobs.

The European Commission’s findings in September mirrored Ifo’s. In
the Commission survey of economic sentiment released on Wednesday, firms
polled across major sectors of the German economy had revised upwards
their employment expectations. The upward revision in the retailing
sector was especially strong, with hiring expectations only one point
below the series high.

A brighter outlook was also seen on the consumer side, with
households’ employment fears over the next year falling to their lowest
level since June 2008, the Commission added.

Despite slowing growth in output and new orders, staffing levels in
the private sector continued to swell in September, Markit Economics
reported, citing its purchasing managers’ index (PMI). Firms in both the
service and manufacturing sectors reported additional hirings, boosting
the PMI employment figure to its highest since May 2008.

“[A] further solid rise in employment suggests that manufacturers
are still optimistic that the recovery has further to run,” Markit
economist Tim Moore said.

— Frankfurt bureau: +49 69 720 142: email: frankfurt@marketnews.com —

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