German jobless hits 12-year low

German unemployment fell for the 15th straight month in June as a robust economy continued to generate new jobs, the Federal …

German unemployment fell for the 15th straight month in June as a robust economy continued to generate new jobs, the Federal Labour Office said.

Seasonally adjusted unemployment fell by 37,000 to 3.82 million in June, nearly twice as much as the 20,000 drop forecast by economists.

The adjusted jobless rate dipped to 9.1 per cent from 9.2 per cent in May. The German economy, Europe's largest, expanded by 2.8 per cent last year, its best rate in six years, and is expected to come close to, or match, that growth in 2007.

Labour Office head Frank-Juergen Weise said that growth was fuelling the creation of more full-benefit jobs and denting the jobless rate.

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The unadjusted jobless total fell to 3.687 million on the month, the lowest level since November 2000 and the lowest June reading in 12 years.

Economists said the figures pointed to stronger consumer demand and a more balanced, sustainable growth outlook for an economy that has relied heavily on exports in past years.