More confidence in the job market

The German Institute for the Labour Market is looking to the future much more optimistically in November than a month earlier.

More confidence in the job market
dpa

Nuremberg, Germany (dpa) - The German labour market is set for an upturn over the months ahead, according to predictions based on a forward-looking survey conducted by the Nuremberg-based IAB Institute for the Labour Market.

The IAB said it did not expect larger increases in seasonal unemployment as the winter months approach.

On Friday the Federal Employment Agency (BA) is to publish its monthly data for November. In October, there were 2.2 million people unemployed in Germany, corresponding to a rate of 4.8 per cent, according to BA figures.

The IAB's monthly Labour Market Barometer came in at 99.4 points on the unemployment index in November, below the neutral mark of 100, but well above the October figure of 98.5.

Apart from its unemployment index. the IAB also puts out an employment index, combining the two into its Labour Market Barometer.

The employment index came in at 102.1, the highest level since June.

"The economic upturn is leading to problems in industry, in particular, but labour is still so tight that the labour market is remaining robust," IAB researcher Enzo Weber said.

"Without the strong labour market, the risk of Germany sliding into an economic crisis would be considerably higher," he said.