Large drop of October Unemployment data in Germany

The total unemployment rate in Germany declined a bit lower than expected for the month of October which was released on Thursday. It demonstrates the upbeat labor market as more and more jobs are being created which supports the positive environment in consumption among the biggest economy in Europe.

The seasonally adjusted unemployment data shows a decline of 11,000 to 2.495 million, according to the Federal Labour Office. This shows a bigger drop than the presumed 10,000 from the Reuters survey.

The unemployment rate stayed at 5.6 percent which has been the least since the reunification 27 years ago.

The Labour Office chief Detlef Scheele said that the labor market continues to progress well which was further supported from the “strong upturn” in Autumn that resulted in a greater decline in both jobless and underemployment data that how it should be.

The positive labor market process to be beneficial as it proceeds to give positive growth in a growth cycle driven by consumption in Germany. Consequently, this still has an impact on a much higher tax revenues which will also give time for the succeeding government to improve the investment.

After the election in September, Chancellor Angela Merkel’s conservatives are attempting to establish a coalition government along with the pro-business Free Democrats (FDP) and the Greens. The Greens aims to improve investments in technologies that are good for the environment as well as construction, technological advancement, and education. On the other hand, both the FDP and conservatives focus on tax reduction.