Surprise Drop in German Unemployment

The lines at Germany's job centers shortened last month, but they were still the longest for June since reunification. Unemployment in Germany fell further than expected in June, according to figures published by the Federal Labor Office in Nuremberg on Tuesday. But joblessness in the month was still the highest in 12 years. Almost 4.26 million people were looking for work last month, 85,000 less than in May. The unemployment rate fell from 10.4 to 10.2 percent. According to the Labor Office, the numbers are surprisingly low, even when seasonal factors are taken into account. Seasonally adjusted figures put the drop at 33,000. But it's not all good news. The jobless figures were still the highest for June since reunification in October 1990. And a year-on-year comparison reveals an increase of 303,100. The head of the Labor Office, Florian Gerster, said that apart from the usual seasonal factors, the reduction was down to new legislation aimed at reviving the labor market. The authorities have stepped up efforts to broker jobs for the unemployed, with some success. One positive side-effect of this campaign is that some people have had their names struck from the register rather than have jobs forced on them.