German jobless below 6 per cent as employment remains strong

BERLIN – Germany’s unemployment rate has dipped below 6 per cent as the labour market in Europe’s largest economy strengthens further in what is an election year.

The Federal Labor Agency said Wednesday that the unemployment rate in April fell to 5.8 per cent from 6 per cent the previous month, with about 94,000 fewer people registered as jobless. In figures adjusted for seasonal variations the rate was also 5.8 per cent, unchanged from the previous month.

ING economist Carsten Brzeski said survey indicators suggest that the positive trend will continue.

He said in a research note that “the labour market will remain an important growth driver for the entire economy.”

Brzeski said there is still “ample room for improvement,” noting that the low-wage sector is still “huge” and the number of long-term unemployed remains high.