While conditions have remained robust in the German labour market, there has been some weakening in the outlook. There is a need to monitor trends closely, as any further weakening could imply downward surprises to growth.
The number of unemployed in Germany in April is expected to have declined by 12 thousand, following a drop of 14K thousand in March, according to Societe Generale. The unemployment rate is expected to remain stable at its new historical low of 6.4%.
The labour market, which will gradually feed higher wages in the coming years, similar to developments at the start of this year. The low inflation rate adds to gains in real disposable incomes this year and is expected to deliver robust household consumption.
