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Germany: Jobless Rate At 6.9% In April

ByBNP Paribas
AuthorPhilippe d'Arvisenet
Published 04/30/2013, 07:37 AM
Updated 03/09/2019, 08:30 AM
GFKG
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NWSA
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Unemployment rate was unchanged at 6.9% in April, remaining in a row near its lowest level in more than twenty years for the seventh month. The German labour market resisted well to the global economic slowdown, even if it is currently moving sideways.

At 2.938 million, unemployment increased for the second month in a row, up 4K in April, after +12K in March, back to its highest level since August 2011. This rise came as a surprise, as we expected a downward correction in April following the marked jump in unemployment in March. Indeed temperatures in April were much more in favour of a decrease in unemployment, in particular in the construction sector. The employment component of the composite PMI remained above the 50-threshold in April for the second month in a row, although it was down by 0.4 when compared to the previous month.

Employment (published with one-month lag) was modestly up over the month in April (+0.1% m/m) and up 0.7% year-on-year.

All in all, the German labour market weathered the global economic slowdown pretty well, even though it is currently moving sideways. This is good news for household confidence and real disposable income, as labour unions are in a comfortable position to negotiate pay hikes. According to GfK consumer confidence released today. Household confidence index increased to 6.2 in May from 6.0 in April, which is the highest level since mid-2007.

This should also boost household consumption and is also welcome news for the euro, since firmer private consumption growth in Germany could support an export-led recovery in peripheral countries.

BY Caroline NEWHOUSE

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