German jobless rate hits record low, job vacancies rise

German unemployment fell more than expected in October, pushing down the jobless rate in Europe's biggest economy to a record low and signaling a likely fourth-quarter boost for private consumption and overall economic growth, Reuters informs.

The seasonally adjusted jobless total fell by 13,000 to 2.662 million, the Labor Office said. That compared with a consensus forecast of a fall of 1,000 in a Reuters poll.

"Due to the autumn pick-up, unemployment fell significantly, employment rose again and demand for new staff increased further," Frank-Juergen Weise, head of the Federal Labor Office, said.

The adjusted unemployment rate edged down 0.1 percentage points to 6.0 percent, the lowest level since German reunification in 1990.

The number of job vacancies hit a record high of 691,000, suggesting companies are increasingly struggling to find new staff quickly on the labor market.

The government expects the number of people in employment to hit a record of 43.6 million this year and of 44 million in 2017. That should push up state revenues, enabling the government to increase state spending or reduce taxes.

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