Unemployment in Germany in January 2016 fell to 6.2%, according to data of the Federal Employment Agency of Germany. The index updated the record low since the country's reunification in 1990.
Prior to this, the indicator stayed at the level of 6.3%, which was also the lowest level since 1990 for two consecutive months. Before that, unemployment was recorded at 6.4% for seven months in a row.
The number of unemployed in the country declined in January by 20 thousand, to 2.73 million people.
Analysts polled by Bloomberg expected no change in unemployment which was at 6.3% and predicted a decrease in the number of unemployed by only 8 thousand.
The rate of decrease in the number of unemployed in December is revised from 14 thousand to 16 thousand.
A strong labor market situation indicates the preservation of domestic demand at a high level, which in turn will support good growth of GDP increase, experts say.
As predicted by Ministry of Economy of Germany, consumer spending will grow by 2.3% this year in comparison with the expected rise in the last year by 1.6%.
Unemployment in Germany is significantly below the average of the Eurozone. Based on the average estimate of analysts, the unemployment rate in the Eurozone countries is 10.5% in January, remaining at the previous month's level.
The unemployment rate in the Eurozone declined in December to the lowest level in more than four years, official data showed on Tuesday, which increased optimism about the health of the regional economy.
Eurostat report showed that the unemployment rate in the Eurozone fell to a seasonally adjusted 10.4% from 10.5% in November. It was the lowest since September 2011. Analysts had expected it to remain unchanged at 10.5% in December.
In December, the unemployment rate in the European Union (28 Member States) was 9.0%, unchanged from November. The indicator is the lowest in the EU since June 2009.
Among EU member states, the highest levels were recorded in Greece (24.5% in October 2015) and in Spain (20.8%).