German unemployment fell unexpectedly in June to 6.8%, down slightly from 6.9% in April. The decline seems extraordinary, as many other European countries continue to set unemployment records. Even youth unemployment in Germany is low: just 5.6% for people under 25, and falling. (In other European countries it’s as much as double the overall national rate.)
The reason? German exports are still going strong, despite regional economic distress. Although Germany still exports most of its goods to other European countries, particularly EU member states, since 2010 it’s been shipping more and more of its wares outside of Europe. And with the euro cheap relative to its historic value, one can only expect that the export momentum will continue.