German unemployment fell at the fastest pace in more than two years in April as Europe’s largest economy shrugged off the coldest winter in 14 years and a worsening fiscal crisis in the euro region’s periphery.
The number of people out of work declined a seasonally adjusted 68,000 to 3.29 million, the Nuremberg-based Federal Labor Agency said today. The drop was the biggest since January 2008 and exceeded the decline of 10,000 that economists had forecast, based on the median of 30 estimates in a Bloomberg survey. The jobless rate fell to 7.8 percent from 8 percent.
The data highlights the split between Germany and its euro- region neighbours such as Greece, Spain and Portugal, which are grappling with mounting budget deficits and higher unemployment rates. Bundesbank President Axel Weber said this week that the German recovery will gather steam this quarter after poor weather curbed construction and spending in the first quarter.
For more: German Jobless Drops as Economy Shrugs Off Winter, Greek Crisis - BusinessWeek
Labels: Banking Industry, EU, Germany