Germany / Unemployment Drops in June (Rate at 6.8%)

German unemployment unexpectedly fell in June amid signs a recovery in Europe’s biggest economy is on track even as the euro area struggles to emerge from its longest ever recession.

The number of people out of work dropped by a seasonally adjusted 12,000 to 2.94 million, after a revised gain of 17,000 in May, the Nuremberg-based Federal Labor Agency said today. Economists predicted a June increase of 8,000, according to the median of 35 estimates in a Bloomberg News survey. The adjusted jobless rate was at 6.8 percent, matching the two-decade low registered for most of last year. May’s rate was revised to 6.8 percent from 6.9 percent.

“The jump in May was something of a distortion, so there should be a correction” said Ulrike Rondorf, an economist at Commerzbank AG in Frankfurt before the data was published. “The labor market as a whole is doing well, considering the significant economic slowdown over the winter.”

Chosen excerpts by Job Market Monitor

via German Unemployment Unexpectedly Drops in Recovery Sign – Bloomberg.