Forex News – Germany’s unemployment falls for fifth month

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The German economy  continues to show resilience, with unemployment falling for a fifth straight month in March. Europe’s largest economy has a record low unemployment rate of 6.7 percent as demand for workforce remains high, providing evidence that Germany is continuing to grow.

The number of unemployed Germans dropped in March by more than expected, by 18,000, versus a 10,000 forecast.

Germany’s adjusted jobless rate was 5.8 percent in January,  based on the latest report from OECD, the lowest in the euro zone compared with a 10 percent unemployment rate in France, 9.2 percent in Italy and the euro zone average of 10.7 percent.

While growth in the euro zone is projected to contract 0.3 percent in 2012, Germany’s economy is expected to grow 0.6 percent, according to the European Commission forecast.  Recent data show that German Investor confidence is at its highest in 21 months and business confidence at an 8-month high.

The euro ticked up slightly after the jobs report around 10am German time, trading at 1.3341.