From Staff Reports
Germany’s seasonally adjusted unemployment rate held steady at 9%, according to The Associated Press. The total number of unemployed individuals was 3.705 million in August, fewer than July’s 3.715 million, but more than the 3.687 million unemployed in the month of June.
Adjusted for seasonal changes the number of people out of work fell by 15,000 keeping the adjusted jobless rate unchanged at 9%, its lowest level in four years. The overall level of unemployment is 8.8%.
Throughout the 1990s – and the first part of this decade – Germany has grappled with poor economic growth and double-digit unemployment. In the fast few years however, the German economy has shown signs of life with growth spurred on by growing consumer confidence and rising exports. Demand for German computer chips, home appliances, and automobiles have helped motivate the economy. As a result more jobs have opened up at factories and production plants.
There was a brief concern that the country’s economic growth might be stymied by the U.S. subprime crisis, especially after two German lenders had to be rescued after investments linked to the U.S. subprime market collapsed. But the German economic growth so far seems unaffected. In fact, the nation has penciled in a budget surplus for the first time in 18 years.
The increased revenue appears to be the result of an increase in wages, as well as increased revenue from corporate taxation – up 29.8% and 11.9% respectively. Over the past few years Germany has been privy to lower unemployment and rising corporate revenue and wages. Still, the rapidity at which Germany has improved upon its fiscal efficiency, which has been bleak as of late (Germany breached the European Union’s fiscal rules every year from 2002-2005), has been astonishing.
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