Big drop predicted in German unemployment

25th April 2007, Comments 0 comments

25 April 2007, Berlin (dpa) - The number of people out of work in Germany is expected to fall to the lowest level in more than a decade next year, Economics Minister Michael Glos said Wednesday. A booming economy is expected to see unemployment figures drop by 700,000 this year and 270,000 in 2008 to below the 3.5 million mark, the minister said in presenting the government's economic forecast. Glos said he expected the economy to outstrip initial growth projections of 1.7 per cent this year and grow by 2.

25 April 2007

Berlin (dpa) - The number of people out of work in Germany is expected to fall to the lowest level in more than a decade next year, Economics Minister Michael Glos said Wednesday.

A booming economy is expected to see unemployment figures drop by 700,000 this year and 270,000 in 2008 to below the 3.5 million mark, the minister said in presenting the government's economic forecast.

Glos said he expected the economy to outstrip initial growth projections of 1.7 per cent this year and grow by 2.3 per cent in 2007 and 2.4 per cent next year.

The government's estimates mirror those of Germany's five leading economic institutes, which last week predicted Europe's biggest economy would grow 2.4 per cent in both this year and next.

"The upswing is continuing, growth remains strong and the situation on labour market is improving steadily," the economics minister said.

Glos said the outlook for the German economy "remained good," but urged management an unions to stick to moderate pay raises this year so as not to endanger the country's competitive position.

A total of 4.108 million Germans, or 9.8 per cent of the workforce, were without jobs in March.

Germany emerged last year from a protracted period of stagnation to report a sturdy 2.7 per cent growth rate - the best in six years and higher than the average growth among its partners in the 13-member eurozone.

DPA

Subject: German news

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