Job losses in Germany fell 12K in September amid forecasts for a 20K rise, with the annual rate of unemployment unexpectedly falling back to 8.2% from 8.3% in August. The breakdown of the report showed the jobless rate in Western Germany held steady at 7.1% for the second consecutive month in September, while the rate in Eastern Germany fell for the second month to 12.9% from 13.0%, and the data encourages an improved outlook for the region as the economy emerges from the worst recession since the post-war period. However, market participants anticipate unemployment to jump in the following year as the government stimulus tapers off, and fears of a protracted recovery may lead businesses to scale back on production and employment throughout the second half of the year in an effort to weather the downturn in global trade.
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