The German jobless rate slipped to -29K from a revised reading of -39K in August, which helped to keep the unemployment rate held steady at its lowest level in 16 years. The unemployment rate was unchanged at 7.6% for the second consecutive month, which suggests that Europe’s largest economy may avoid a recession in the third quarter. However, the spillover effects of the U.S. financial crisis may weaken the economy further as Germany’s second largest commercial property, Hypo Real Estate, is dealing with liquidity issues. Furthermore, the global economy has cooled considerably over the past months as the world’s two biggest economies, the U.S. and Japan, are headed for a recession.
