The number of Germans in employment rose at the fastest pace since 2007, showed official figures published on Tuesday by the Federal Statistical Office.
The Wiesbaden-based government statisticians estimated that 638,000 more people (plus 1.5 percent) were employed in 2017 compared to the previous year. The number of German workers consequently soared to 44.3 million in absolute terms, marking the "highest level witnessed since the re-unification" in 1989 when the current national data series began.
"The growth in employment which has already lasted for twelve years is retaining its momentum," read a statement by the Office.
According to the Office, most new positions in 2017 were created in the service sector (plus 1.7 percent). Manufacturing employment grew at a slower annual rate of 0.8 percent, with 61,000 more individuals in work.
Higher labor participation rates among native Germans as well as a positive effect of immigration compensated for the negative demographic effects in Germany. Given a rapidly aging population and a relatively low birth rate, economists have repeatedly warned that Germany's working population is shrinking in size and that the number of its pensioners rises, which is shouldering a growing fiscal burden.
The Office pointed to strong economic growth as another important factor. Gross Domestic Product (GDP) grew for the eighth consecutive year in 2017, driven by a domestic increase in private household consumption due to low unemployment and rising real wages, as well as higher-than-expected international demand for German exports.
The Munich-based Ifo Institute for Economic Research expects the current trend to persist and German employment figures to break historical records again in 2018 and 2019 as a consequence.
The Wiesbaden-based government statisticians estimated that 638,000 more people (plus 1.5 percent) were employed in 2017 compared to the previous year. The number of German workers consequently soared to 44.3 million in absolute terms, marking the "highest level witnessed since the re-unification" in 1989 when the current national data series began.
"The growth in employment which has already lasted for twelve years is retaining its momentum," read a statement by the Office.
According to the Office, most new positions in 2017 were created in the service sector (plus 1.7 percent). Manufacturing employment grew at a slower annual rate of 0.8 percent, with 61,000 more individuals in work.
Higher labor participation rates among native Germans as well as a positive effect of immigration compensated for the negative demographic effects in Germany. Given a rapidly aging population and a relatively low birth rate, economists have repeatedly warned that Germany's working population is shrinking in size and that the number of its pensioners rises, which is shouldering a growing fiscal burden.
The Office pointed to strong economic growth as another important factor. Gross Domestic Product (GDP) grew for the eighth consecutive year in 2017, driven by a domestic increase in private household consumption due to low unemployment and rising real wages, as well as higher-than-expected international demand for German exports.
The Munich-based Ifo Institute for Economic Research expects the current trend to persist and German employment figures to break historical records again in 2018 and 2019 as a consequence.
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