German unemployment jumps in December, official data shows

The number of people without work in Germany rose in December for the first time in a year-and -a-half, official figures showed yesterday.

On a seasonally adjusted basis, the standard used by economists for comparisons, it was the first monthly increase since June 2009.

On an unadjusted basis, the benchmark for public debate, the jobless total surged by 85,000 to 3.016 million as cold temperatures crimped construction activity, the data showed.

The seasonally-corrected unemployment rate in December nonetheless remained at 7.5 percent, in line with an average analyst forecast established by Dow Jones Newswires.

That is its lowest rate since 1992.

For 2010 as a whole, unemployment dropped to 7.7 per cent of the workforce from 8.2 per cent in 2009 owing to strong recovery in Germany which has the biggest economy in Europe.

Improvement was seen across the country and in all age brackets, the labour office said, as Germany pulled out of its worst post-war recession and activity expanded by what might be the fastest rate since reunification in 1990.

Economy Minister Rainer Bruderle forecast “further improvement in the labour market this year,” and said in a statement that full employment was within reach.

Germany has benefited from increased global trade and domestic demand has also picked up as companies went ahead with investment plans and the number of unemployed fell steadily last year. The central bank has forecast economic growth of 3.6 per cent for 2010, a post-reunification record, followed by further expansion of two per cent this year. ING senior economist Carsten Brzeski noted that on average, almost 40.4 million people had a job in Germany last year, the highest level ever, and said the rise in unemployment last month would not halt the improving trend. “The winter weather could delay a further improvement but will not stop it,” Mr Brzeski said.

“Recruitment plans are still improving and vacancies are at the highest level since 2007,” he noted.