German labor market shows signs of recovery in October, jobless rate remains at record low

Unemployment in Germany fell during the month of October, largely in line with market expectations and throwing signs of a gradual recovery in the country’s ailing labor market. Also, the jobless rate remained at a record-low level in Europe’s biggest economy.

In October 2016, roughly 43.7 million persons resident in Germany were in employment, data released by the Federal Statistical Office (Destatis) showed Wednesday. Compared with October 2015, the number of persons in employment increased by 359,000 or 0.8 percent.

Although employment continued to rise, it did so at a slower pace than during the individual months of the first half of the year when the year-on-year increase rates ranged between 1.1-1.3 percent. In October 2016, roughly 1.7 million people were unemployed, 118,000 fewer than a year earlier.

Further, results of the labor force survey show that 1.73 million people were unemployed in October 2016. Adjusted for seasonal and irregular effects, the number of unemployed stood at 1.78 million, which was a decline of roughly 14,000 on a month earlier. The adjusted unemployment rate was 4.1 percent in October 2016, which was a decrease of 0.1 percentage points compared with the previous month.

"The labor market developed in a broadly favorable way in November," Reuters reported, citing, Frank-Juergen Weise, Head of the Federal Labour Office.

Meanwhile, the EUR/USD currency pair has formed a bearish 'doji' candlestick pattern at 1.06, down 0.08 percent, while at 9:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at -158.97 (a reading above +75 indicates bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex