German unemployment fell in March to the lowest level since the country reunited in 1990 as the recovery in Europe's biggest economy continues to pick up speed, data showed today.
The number of people registered as unemployed in Germany fell by a seasonally-adjusted 15,000 to 2.798 million in February, the Federal Labour Office said.
That was steeper than expected, as analysts had been pencilling in a decline of around 10,000.
The unemployment rate - which measures the jobless total against the working population as a whole - slipped to 6.4% in March from 6.5% in February.
This was the lowest level since west and east Germany reunited in 1990 after the fall of the Berlin Wall the previous year.
In raw or unadjusted terms, the jobless total decreased by 85,500 to 2.932 million and the jobless rate eased to 6.8% in March from 6.9% in February, Germany's labour office said.
Normally, unemployment declines in the spring as the warmer weather allows companies in sectors such as construction to take on workers.
But the current strength of the economic recovery in Germany was magnifying that effect, the labour office said.
"The labour market developed positively both on the supply and demand side. The employment trend remains pointing firmly upwards. And usual spring upturn that begins in March was stronger than usual," it said.
German gross domestic product (GDP) expanded by 0.7% in the fourth quarter of last year, fuelled primarily by consumer spending and exports, but also by construction investment and experts expect the recovery to gather momentum this year.
"Early indicators point to an overall favourable development in 2015," the labour office said.
"The labour market is in good shape and is benefitting from strong economic growth," said labour minister Andrea Nahles. "Wages are rising and giving private consumption a boost."
German retail sales dip in February
German retail sales fell in February on a monthly basis for the first time since September, data from the statistics office showed today.
But a strong annual gain buoyed expectations private consumption will propel growth this year.
Retail sales, a notoriously volatile indicator, dropped by 0.5% on the month in real terms in Europe's largest economy. They came in slightly higher than the forecast in a Reuters poll for a 0.7% dip.
On the year, retail sales jumped by 3.6% in real terms as shoppers spent more online and on shops on food, clothes and cosmetic products. They just missed the Reuters forecast for a 3.7% rise.
German consumer morale is at its highest level in over 13 years as cheaper oil frees up some cash for shoppers who are already benefitting from record employment and rising wages.
