America’s economic situation has experienced modest recovery in recent months, and turbulence in the hiring market has made many people skeptical of the longevity of such progress. While much of Europe has experienced similar financial struggles – particularly Spain and Greece – it seems that the continent’s largest economy has continued to shrug off the worldwide economic stagnation.
According to The Associated Press, Germany’s national unemployment rate fell significantly in May, reaching its lowest point since the end of 2011. The German labor agency reported that the number of registered jobless citizens decreased from 7 percent in April to 6.7 percent in May. These figures mark a drop of more than 100,000 unemployed Germans in the last year.
While this is positive news, it does reveal that Germany’s economy may not be as strong as it’s been in recent years. Bloomberg News reports that unemployment rates in the country had continually fallen for 27 months before leveling off in October 2011 due to the European debt crisis. Despite recent gains, Germany may be succumbing to financial pressure like the rest of the continent.
“At first glance, today’s numbers illustrate the strength of domestic demand, at least partly cushioning the German economy against the negative impact from the debt crisis,” ING economist Carsten Brzeski told the AP. “At a second glance, however, signs are increasing that the resilience of the German labor market is slowly cracking up.”