Some slight moderation had been expected in the German labour market over the winter as concerns over deflation in Europe grew higher, but instead the German labour market has strengthened.
According to Societe Generale, the number of unemployed in Germany in March is expected to have declined by 18 thousand, following a drop of 20 thousand in February. The unemployment rate is also expected to drop to a new record low of 6.4%, although rounding makes this a tight call for this month.
This is all the more impressive given that the minimum wage debate (and high recent wage settlements in the metal and electronics industry) will put some cost pressures on companies.
"We expect continued robustness in the labour market as economic activity remains buoyant, which should result in a continued gradual decline in the unemployment rate", added Societe Generale.
