German unemployment fell for a fourth successive month in December as labour market reforms helped hold the 2003 jobless average just below a post-war high hit in 1997, Federal Labour Office data showed today.
The Labour Office said the decline was due to the reforms that have made it harder for people to claim benefits if they are unwilling to take up job offers or training, a view shared by analysts.
The Labour Office said unemployment adjusted for seasonal factors fell 21,000 month on month to 4.337 million, its lowest level since January 2003. The drop beat analysts' expectations for a decline of around 10,000.
Unadjusted unemployment rose 132,000 to 4.317 million, the lowest December increase since 1994, according to a Reuters calculation. Headline unemployment typically rises during winter months as temporary jobs disappear in areas such as agriculture and construction.
The data provided little evidence of any improvement in the underlying labour market, with the number of vacancies registered at the labour office declining to 258,000 from 275,000 in November, or down 20 per cent year on year.
Total employment adjusted for seasonal factors fell 14,000 in October, the last month for which data is available.
The Labour Office said in 2003 as a whole unemployment averaged 4.376 million, just short of the post-war high of 4.384 million set in 1997, and up some 316,000 from 2002.