German employment rate unexpectedly grew during February indicating that Europe`s largest economy is recovering after a contraction at the end of 2012. Unemployment slid 3000 to 2.92 million, keeping seasonally adjusted rate at 6.9% this month. According to economists' forecasts, a further decrease of 5000 is currently expected. The Euro depreciated 0.2% versus The Dollar and was at $1.3113 at 10:36 a.m. in London.
"The overall economic outlook for Germany has brightened. This should be reflected in a positive labor market development, albeit with a delay," said Mario Gruppe, an economist at Nord LB in Hanover. On the other hand, Ulrike Kastens, an economist at Sal.Oppenheim in Cologne, said: "The lack of qualified staff in the workforce will act like a rigid corset on recruitment, meaning that we will probably see a marginal, if steady decline in unemployment as the economy grows."