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German unemployment falls in Nov

Bloomberg

German unemployment extended its decline in November as businesses added staff to work off a backlog in orders.
Unemployment in Europe’s largest economy falls by 34,000, beating economists’ forecast for a drop of 25,000. That pushed the jobless rate to 5.3%.
“Consequences of the current, worrying corona situation in Germany have hardly shown up so far,” Federal Labour Agency chief Detlef Scheele said.
Germany’s labour market benefited from a surge in global demand following the end of widespread pandemic lockdowns. Supply bottlenecks, however — also a result of stronger demand — have weighed on production and are pushing a large part of the country’s economic recovery into next year.
More recently, risks to the economy have increased amid a surge in coronavirus infections and the reintroduction of some curbs to activity, which could hurt hiring in the services sector going forward.
Robert Habeck, who will serve as a vice chancellor in the new government, called for a nationwide “lockdown for the unvaccinated.”
Soaring prices are also mounting pressure on German businesses, with a separate report showing inflation of 6% in November.
European Central Bank officials are less than three weeks away from a crucial meeting to set the course for post-crisis monetary policy, at which they will determine how much more stimulus to provide for the region’s recovery without risking entrenched higher inflation rates.

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