Germany’s unemployment likely to have dropped in July

Germany’s joblessness is likely to have dropped in July. According to a Societe Generale report, unemployment in Germany is expected to have dropped by 2000, while the jobless rate is expected to have stayed at 6.1 percent. Concerns in the start of 2016 regarding a material slowdown in the labor market have diminished and employment growth is expected to continue, although at a slower pace than the current rate of about 50,000 per month.

This gives a stable backdrop to domestic demand-led growth in Germany for the quarters ahead, stated Societe Generale. Wage growth is still likely to pick up in 2017 as the labor market continues to be sufficiently solid to get compensated for the likely acceleration in inflation, hence safeguarding the real income growth, added Societe Generale.