Roundup: German employment hits record high in 2015

The number of people in employment in Germany hit the highest level on record in 2015 as Europe's largest economy continued to expand and immigrants helped offset the labor shortage, according to official data released on Monday.

In 2015, roughly 43 million people living in Germany were employed, an 0.8-percent rise from 2014, marking the highest level since the country reunified 25 years ago, said German federal statistical office Destatis.

German employment has been increasing for over 10 years and unemployment in the country has been declining since 2009.

In 2015, the number of unemployed people went down by 6.7 percent to 1.95 million, the lowest level in German history. The jobless rate also decreased from 4.7 percent in 2014 to 4.3 percent, less than half of the European Union average.

A robust economy contributed to the stable labor market. In December, German Purchasing Managers' Index (PMI) in manufacturing stood at 53.2 points, up from 52.9 in November, indicating an expansion of business activities in the manufacturing sector, the German economy's backbone.

Markit, a financial information service provider which released the German PMI on Monday, said German manufacturing companies in December reported the strongest expansion in four months.

It's survey on over 500 German companies found that the expansion in production was a response to strong demand from both domestic and foreign markets. As a result, employment in the manufacturing sector increased for the fifteenth month in December.

"New order intakes continued to grow at a healthy rate, with demand for consumer goods particularly strong and exports showing the largest monthly rise since February 2014," said Oliver Kolodseike, an economist at Markit, adding that employment and production were likely to continue their growth trends in the coming months.

"The German economy remains on an expansionary trajectory," said the German Federal Ministry for Economic Affairs and Energy in its recent monthly report.

Despite headwinds from the global economy, German growth was benefited from robust domestic demand, low oil prices, and a weak euro.

The ministry estimated a growth of 1.7 percent in the German gross domestic product in 2015, 0.2 percentage points higher than in the previous year.

Meanwhile, over 1 million refugees arrived in Germany in 2015 and more are expected to come in the new year, something the ministry said could stimulate the economy. Economists said young skilled workers among these refugees could help fill the labor gap which Germany faced in an aging society.

In her new year speech, German Chancellor Angela Merkel said that despite huge challenges, Germany would benefit the country both economically and socially.

"We now have the lowest unemployment rate and the highest gainful occupation level since reunification," Merkel said. "I am confident that if we handle it right, the current major challenge of the arrival and integration of so many people will also present an opportunity in the future." Endit