SA Unemployment: -26k (pan-German), -18k (West), -8k (East)

MNI survey median: -5k m/m
MNI survey range: -10k to -4k m/m

FRANKFURT (MNI) – The ranks of unemployed in Germany contracted by
more than even the most optimistic forecasts expected in September,
while the number of job vacancies continued to climb, the Federal Labour
Office reported on Thursday.

In seasonally adjusted terms, the number of jobless persons fell
26,000 to 2.922 million, bringing the unemployment rate to 6.9%.
Expectations had been for no change to the jobless rate, which was at
7.0% in August.

Without adjusting for seasonal trends, the unemployment rate fell
0.4 percentage point to 6.6%, reflecting a 149,000-person drop to 2.796

Payroll jobs, the data for which suffer a one month lag, rose by
29,000, adding to July’s 21,000 gain.

Job vacancies increased by 7,000 after rising 6,000 in August.

In contrast with indicators warning of an economic slowdown,
surveys such as the PMIs and the Ifo business climate continue to
highlight further workforce expansion in the private sector, as well as
plans to maintain job growth in the near term.

Germany’s stable labour market should help the country avoid a
recession, the latest GfK sentiment report said, adding that the
employment situation has yielded a boost in income expectations despite
the deteriorating outlook for the economy.

The labour market has also had a positive effect on consumers’
propensity to spend, which suffered a moderate decline in September, but
“remains at an extremly good level,” the GfK report noted.

— Frankfurt bureau: +49 69 720 142, email: —

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