Germany unemployment is likely to have fallen in May. It is expected to have dropped by 11,000, taking the jobless rate to 6.1%, said Societe Generale in a research report. Certain survey indicators strived to rebound in May. However, broad-based Ifo survey recorded a positive result, while the composite PMI employment index also rose robustly. This is expected to have stemmed from improved confidence in domestic sector that is likely to again boost solid growth in employment, added Societe Generale.
Nevertheless, migration resulting in increased labor force might restrict the fall in jobless rate slightly in the future. Germany’s labor market continues to be challenged by integrating migrants, but the labor market data continues to be strong so far. The number of vacancies increased to 633,000 jobs in April, indicating just a slight tendency to weaken. A robust labor market is also expected to underpin solid consumption in the country and also higher wage growth eventually, noted Societe Generale.
