German July unemployment extends decline as Brexit fails to shake the nation

Germany’s unemployment extended decline during the month of July as woes surrounding the fallout of Britain in a referendum held on June 23 have failed to shake the economic fundamental of the country. The European Union’s largest economy is in fact, throwing signs of reluctance to the growing uncertainty around the globe.

The number of people out of work fell by a seasonally adjusted 7,000 to 2.682 million in July, data released by the Federal Labor Agency in Nuremberg showed Thursday. Economists in a Bloomberg survey had forecast a drop of 4,000. However, the jobless rate remained at a record low of 6.1 percent.

In addition, a study by GfK showed that 95 percent of Germans don not foresee any risk to their jobs just because of Brexit despite business confidence slipping this month. The number of people out of work fell by some 4,000 each in western Germany and the eastern part of the country, the labor agency said.

"The labor market continued to develop positively in July," Bloomberg reported, citing, Juergen Weise, President, Labor Agency, Germany.

Moreover, manufacturing output accelerated to their highest level since early 2014 and purchasing managers’ indices signaling an upbeat labor market. Industry confidence will remain crucial in absorbing the massive job seekers who wish to enter the country’s work force, especially after the country took in more than 1 million refugees last year.

Meanwhile the Brexit impact is largely seen across the globe, with some 322,000 people with refugee status are now actively looking for a job, with 141,000 of them officially registered as unemployed.