Strong German Job Growth Continues
The employment to population ratio rose 1.6%:points, from 67.7% to 69.3%, meaning that employment rose in effect 2.4% relative to the working age population. This is the equivalent of a 3.4% employment growth in America (or a monthly employment gain of 400,000). As a result, unemployment is falling dramatically, from 8.8% the year before to 7.2% now.
This however, implies that the current relative strong economic growth rate is unsustainable. Not only because it is partly (although probably to a lesser extent than in other euro zone countries) fueled by unsustainably low ECB interest rates, but also because the shrinking work force means that labor shortages will soon appear.