German unemployment has fallen below the politically important 3 million mark, reaching its lowest value since 1992. According to the Labor Ministry's figures, the number of unemployed has decreased by 86,000 to an unadjusted 2.945 million this month, pushing the unemployment rate down to 7.0%. Since October 2009, German unemployment has declined by 283,000.
Figure 1: Employment (million) and Unemployment (million) in Germany
The current rebound in economic activity does not fully explain the favorable developments in the labor market given that unemployment has[...]