German jobless rate falls again From CNN Correspondent Chris Burns
Fewer people appear to be seeking work in Germany. YOUR E-MAIL ALERTS Germany Unemployment or or Create Your Own BERLIN, Germany (CNN) -- Germany's seasonally adjusted unemployment rate fell for a fourth straight month in July, by one-tenth of a percent to 11.6 percent -- a decrease due in part to a shrinking number of Germans seeking work, the Labor Office said. Unemployment will be the key issue in expected early elections in September, in which polls indicate conservatives led by Angela Merkel are likely to defeat Chancellor Gerhard Schroeder's Social Democrats. The actual number of jobless rose by 68,000 to 4,772,000, raising the unadjusted rate from 11.3 percent to 11.5 percent, the office said. But factoring in seasonal adjustments, including former jobseekers on summer vacations and a summer break in job training programs, the number of unemployed dropped by 42,000, the office said. The country's jobless rate earlier this year hit 12 percent and topped 5 million -- the highest since the 1930's depression -- and was the key reason Schroeder's Social Democrats lost the country's biggest state election in May. That defeat prompted Schroeder to push for elections a year early, engineering a no-confidence vote earlier this month that prompted President Horst Koehler to set elections for September 18. The move is being challenged in the country's high court. Schroeder contends that after a string of state election defeats, the conservatives now firmly control the Bundesrat, or upper house of parliament, and can block much of his legislation. He is seeking a new mandate to push through more reforms. Schroeder's SPD is polling about 15 points behind the conservatives, but the chancellor hopes to close the gap by arguing that the conservatives want more-painful reforms. Schroeder's reforms, which cut welfare benefits and cost him support among leftists, was blamed for the jump in unemployment earlier this year. In the longer run, however, the reforms are aimed at forcing the hard-core unemployed to seek work. Home Page Get up-to-the minute news from CNN CNN.com gives you the latest stories and video from the around the world, with in-depth coverage of U.S. news, politics, entertainment, health, crime, tech and more. Home Page Get up-to-the minute news from CNN CNN.com gives you the latest stories and video from the around the world, with in-depth coverage of U.S. news, politics, entertainment, health, crime, tech and more.
Germany's unemployment rate fell by 0.1 percent in July, the Federal Labour Office said.

The number of jobless Germans dropped by 42 thousand to 4.8 million, but without seasonal adjustments, including summer breaks in job training and jobseeker holidays, it grew by 68 thousand and is close to a post-war record. Unemployment is projected to rise by 370 thousand by year end, according to German research institute IAB. 

Labour-market problems remain the main issue of the Bundestag election campaign. Chancellor Schröder's government is blamed for the failure of his social policy reform known as Hartz IV and growing unemployment. In recent polls the ruling Social Democrats (SPD) got 27 percent of the vote whilst the opposition Christian Democrats got 44 percent.