November German Unemployment Declines 5,000

Seasonally-adjusted German unemployment declined 5,000 in November following a 13,000 decline the previous month and there has not been an increase in the total for 13 months with a 101,000 decline in unemployment in the last 12 months.

The unemployment decline was in line with market expectations and there were no revisions to the previous data.

Overall employment increased by 13,000 for the month and increased 352,000 compared with the previous year.

The headline unemployment rate declined to 5.7% with an unchanged rate of 6.0% on an adjusted basis while, on an ILO definition, the unemployment rate was 4.0%.

There was a small 1,000 increase in the number of people in underemployment due to the integration of refugees into the labour force, although the rate of increase has slowed considerably from earlier in 2016.

Overall labour demand remains strong with an increase of 3,000 in the number of vacancies for the month with an annual increase of 71,000. Although the employment index edged lower to 222 for November from 223 previously, the index was well above the 205 reading in November 2015.

Overall confidence in the labour market will remain strong in the short term and the recent PMI data was encouraging as it suggested that order backlogs had stopped declining and this will be a crucial factor in sustaining near-term demand for labour.

There was no significant market reaction with attention focused on the OPEC meeting in Vienna.

Tim is a contributing author to He is an economist and has been involved in financial markets for over 20 years as an analyst. He specialises in global economic trends, macro policy and central banks. Extensive knowledge, experience and data mining is used to anticipate trends in equities, bonds and forex with a contrarian slant. He is a graduate of the University of York with a degree in Economics/Econometrics.