German unemployment fell by a bigger-than-expected 78,000 on the month in December, with further employment growth predicted in 2008.
The fall took the adjusted jobless total down to 3.513 million, and analaysts described it as "an encouraging bright spot" amid signs of a slowdown elsewhere in the economy.
German companies have been adding jobs to meet firm demand. Airline Deutsche Lufthansa announced yesterday that it planned to hire almost 4,300 new employees in Germany this year, including 2,000 flight attendants and up to 360 pilots, as it adds aircraft and expands its global network.
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| Employment growth in Germany was greater than expected. |
German unemployment hit a post-war high of 5.010 million in March 2005 but has since fallen steadily, helped by solid economic growth. However, a slowdown in the economy and rising wage pressures threaten to slow the labour market recovery.
The seasonally-adjusted jobless rate dipped to 8.4 per cent in December from 8.6 per cent in the prior month. Vacancies rose by 9,000. The headline unadjusted jobless total edged up to 3.406 million in December.
The German economy grew around 2.5 pe rcent in 2007, down only slightly from a six-year high of 2.9 per cent in 2006. But it faces growing pressure from the strong euro, high oil prices, US financial woes linked to mortgage defaults and higher wage deals.