German Unemployment Drops to Record Low as Economy Powers Ahead

German unemployment slid to a record low in September in a sign that Europe’s largest economy will continue to expand on the back of domestic spending.

The jobless rate dropped to 5.6 percent in September, down from 5.7 percent, according to data from the Federal Labor Agency in Nuremberg on Friday. The number of people out of work fell by a seasonally adjusted 23,000 to 2.506 million, beating the median estimate for a drop of 5,000 in a Bloomberg survey.

Chancellor Angela Merkel, whose leadership has been marked by falling unemployment, stable growth and a balanced budget, won a fourth term on Sept. 24 but with her party’s worst result since 1949. She will now have to forge a coalition without the Social Democrats, who were part of the government for the last term but opted to go into opposition in the new government.

Joblessness fell by about 17,000 in west Germany and 5,000 in east Germany.

Source: Bloomberg