Unemployment rate in Germany has been falling for five years indicating that companies in the largest economy of Europe are confident about their future despite of risks, Bloomberg reports.

Number of people withoutt job fell in August by 8000 to 2,33 million. Unemloyment rate as a result is 5,2%.

German economy development rate in the second quarter was quite high thanks to domestic demand. Future outlook is threatened by slower growth pace in China, emerging markets turmoil and protectionism.

Strong labor market is one of the most important growth drivers. Higher employment will result in increase of wages, which will support price pressure. Inflation was probably at the level of 2,1% this month. Data on unemployment within euro area is due on Friday, but forecasts indicates reduction to 8,2%, the lowest in almost 10 years.