— Dec +50k, Nov +30k, Oct +8k, Sep +18k, Aug +9k, Jul +11k

FRANKFURT (MNI) – The number of employed in Germany rose for the
11th consecutive month in December, lifting the overall level to its
highest point in over nine years, the Federal Statistical Office
reported on Tuesday.

As a result of the 50,000-person increase, 40.552 million people
were registered as employed in December, as measured in International
Labour Organisation (ILO) terms.

In non-seasonally adjusted terms, the number of employed slipped
0.3% on the month, or by 127,000 persons to 40.794 million. However,
December’s figure still represents the highest number of employed in any
December since reunification, the statistics office said.

Employment continued to expand at a robust pace in industry and the
services in January, Markit Economics’ purchasing managers index (PMI)
show. Manufacturing payrolls rose at the fastest pace on record. “Strong
job creation has laid the foundation for increased domestic
consumption,” said Markit senior economist Tim Moore.

While unemployment is still climbing in some Eurozone states,
Germany’s impressive labour market has left the country with another
problem: labour shortages, which could lead to stronger wage gains.
Labour Minister Ursula von der Leyen predicted last month that wage
levels would rise “noticeably” this year due to “fewer workers
available”.

As some previous wage agreements will still be in effect this year,
pay gains should remain relatively contained. Some 70% of employees
polled by the GfK research group last month expected little increase in
salaries this year and only 6% thought their pay gains would outpace
inflation.

Some unions have demanded large hikes for upcoming wage rounds.
Last week, German Employers Association President Dieter Hundt called
recent pay demands “unrealistic” and “totally illusory”.

At 8:55 GMT today, the Labour Ministry is scheduled to release
seasonally adjusted jobless figures for January.

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

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