German unemployment fell for a 19th consecutive month as the jobless rate hit a 14-year low, official data showed today.
The seasonally adjusted unemployment total fell by 40,000 to 3.657 million in October, beating the consensus forecast for a monthly decline of 30,000.
The adjusted jobless rate of 8.7 per cent, down from 8.8 in September, was the lowest since May 1993. In the former west Germany, the rate was 7.2 per cent, while in the regions that made up the old communist East it fell to 14.7 per cent.
The steady drop in unemployment is expected to underpin consumer spending, which accounts for around 60 per cent of GDP and support the economy as waning global growth dampens demand for German exports.
Germany's adjusted unemployment total has dropped steadily from a peak of 5.031 million in March 2005, and Economy Minister Michael Glos said last week he expected the annual average to drop below 3.5 million next year.