"This seemingly reflected a lack of confidence among firms that the recent improvement in demand will be sustained, as well as the reliance on export markets for growth"
- Andrew Harker, senior economist at Markit
The number of people out of work in Europe's fourth largest economy dropped for the fifth consecutive month in July, decreasing pressure on the government and adding to evidence of a nascent economic recovery. There are now 64,866 jobless people less than in a month earlier, when this indicator tumbled by 127,248. Analysts, however, expected a drop of 75,000. On a monthly basis, the number of unemployed people turned lower by 1.36%, while annually, this figure saw a more than double fall than published a year ago. The latest data mean that the overall unemployment now stand at 4.7 million, and according to the Labor Ministry the situation improved in all sectors of origin of jobless persons, except in the group that were not previously employed.
Report also showed that youth unemployment was lower by 2% in July from the preceding month, while on a yearly basis it dropped by 5.6%. During the second quarter, the jobless rate fell to 26.26%, the statistical office reported on July 25. The manufacturing sector is stabilizing as well, cementing expectations the economy is finally on the path to recovery. Nevertheless, this year will most probably be another year of recession, as the economy is facing a widespread slowdown in both investment and consumer spending, record-high unemployment and the aftermath of bubble in the real estate sector.
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