German unemployment hits 29-year low

German unemployment fell to an 18- year low in January, stoking concerns that the world’s second- largest exporter is running short of skilled labor.

The number of people out of work declined a seasonally adjusted 13,000 to 3.135 million, the lowest since November 1992, the Nuremberg-based Federal Labor Agency said today. Economists forecast a drop of 10,000, according to the median of 32 estimates in a Bloomberg News survey.

The adjusted jobless rate fell to 7.4 percent from 7.5 percent. Falling unemployment helps bolster German consumer spending and corporate investments, adding to the economy’s export strength. As unemployment lines shorten and the population shrinks, industrial companies face a skilled labor shortage that may restrain growth.

“Long-term unemployment is declining,” said David Milleker, chief economist at Union Investment in Frankfurt. “We’ll most likely have a broader discussion about a lack of skilled workers.”

Source: Bloomberg