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German Unemployment Falls amid Economic Recovery

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German unemployment fell for a fifth consecutive month in November, according to data released by the Nuremberg-based Federal Labor Agency on Tuesday.

The number of people out of work fell 7,000 to 3.42 million after a seasonal adjustment, the agency said, adding that the unemployment rate declined to 8.1 percent in November from 8.2 percent the previous month.

The continuing fall was mainly attributed to the recovery of the German economy, which expanded 0.3 percent and 0.7 percent in the second and third quarters, respectively.

German business confidence also continued its improving trend, according to the Ifo institute's business confidence index, published on November 24, which suggests the recovery may gather pace next year.

Despite the falling unemployment rate, Federal Labor Agency chief Frank-Juergen Weise told reporters in Nuremberg that unemployment was set to rise in the coming months.

The Paris-based Organization for Economic Cooperation and Development has predicted that German unemployment will face a rapid increase in the next quarters, reaching 9.2 percent in 2010.

(Xinhua News Agency December 2, 2009)

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