Remember all of your predictions concerning how fiscal austerity in Germany would lead to economic malaise?
German unemployment fell slightly in October, dropping to its lowest level in 18 years as the impact of persistently strong growth in Europe’s top economy continued to filter through to the jobs market.
The number of jobless fell by 3,000 to a seasonally adjusted 3.153 million, figures from the Labor Office showed on Thursday, while the headline level dipped to 2.945 million, confirming figures announced a day earlier.
The headline reading fell below the 3 million mark — a key political threshold — for the first time since November 2008, to its lowest point since October 1992.
On an adjusted basis, the jobless rate held steady at 7.5 percent, while economists had forecast 7.4 percent.
“Although October’s decline in unemployment turned out weaker than expected, the underlying trend in the German labor market clearly remains one of rapid improvement on the back of strong economic growth,” said Aline Schuiling from ABN Amro.
I imagine that the British–whom Krugman has denounced for taking their own measures in reining spending in–are taking heart. They probably should be.