Macmillan Jones Reports Germany's Labor Market Boosts Economy

Last month, Germany’s rate of unemployment decreased by more than analysts at Macmillan Jones anticipated, adding momentum to a labor market that already stands as a firm foundation of the consumer-led economic boom.

Macmillan Jones analysts say that the rising rate of employment, strong wage growth and low interest rates have turned domestic consumer spending into Germany’s main source of economic expansion.

Official data released last week showed that the seasonally-adjusted number of unemployed persons dropped by 19,000 month on month. This was more than the drop of 15,000 that was originally forecast by Macmillan Jones analysts.

Unemployment in Germany dropped to 5.3 percent in March from 5.4 percent the month before. Macmillan Jones analysts say this is the lowest rate of unemployment since Germany’s reunification 28 years ago.

Macmillan Jones analysts say a strong development of the job market continued last month in Germany, with many businesses creating new jobs with full benefits and the search for more employees was ongoing.

Official data released by the statistics office revealed that inflation picked up at a slower rate than expected last month, indicating that price pressures remain mostly unchanged in spite of the economic upswing and the European Central Bank’s monetary stimulus.

Macmillan Jones analysts say the strong employment market in Germany is likely to bolster consumer sentiment and fuel even greater domestic spending in Europe’s largest economy where consumer demand has overtaken exports as the main source of economic expansion.