German unemployment lowest in 20 years

Germany's unemployment held at the lowest in more than two decades in February.

The adjusted jobless rate held at 6.8 per cent from January, the Nuremberg-based Federal Labour Agency said today. That's the lowest since Germany's reunification more than two decades ago.

The number of people out of work remained at 2.87 million after declining 26,000 in the previous month. Economists forecast a drop of 5,000 this month.

"The economy is proving robust come bad weather or turbulence from the debt crisis," said Jens Kramer, an economist at NordLB in Hanover, Germany, who forecast an adjusted drop of 19,000.

"Companies are optimistic when they look ahead and this is playing out in the labour market."

Seasonally-adjusted unemployment is slated by forecasters including the labour agency to continue falling with the economy seen strengthening in the second half.

German business confidence rose to the highest in seven months in February while investor sentiment surged to a 10-month high.

German consumer confidence will increase to a 12-month high in March as falling unemployment and slowing inflation boost income expectations, Nuremberg-based market researcher GfK SE said yesterday.

German companies may create as many as 250,000 new jobs this year, including 80,000 in health and social services, 50,000 in information technology and 40,000 in engineering branches, the DIHK national industry and trade chambers said on Feb. 17, citing a survey.

Bloomberg