The monthly economic release covering Germany's employment figures is called the German ILO. ILO is an acronym for the International Labor Organization, a specialized agency of the United Nations that has sought, since its founding and adoption by the Treaty of Versailles in 1919, to promote social justice, human rights and decent working conditions. The world adopted the ILO as a specialized agency of the League of Nations to keep peace and avoid social unrest in the workplace. Since 1919, and through many years of conventions and treaties adopted by European States, all states subscribe to the standards of the ILO, which cover categories such as collective bargaining, child labor, forced labor and other workplace issues.
Critical Numbers
Why the German ILO reports in particular are so vital to economists, policymakers and traders is because Germany is the European leader in manufacturing and industry and was in some periods in history, leading the world. Germany sets the standard and tone regarding the business climate of all of Europe. Spain, France and Italy vie for the No.2 spot. So, the world watches German governmental policies as a gauge to future business climates in Europe.

Many will analyze German numbers to determine whether unemployment hit a bottom, or analyze the numbers based on a four-week moving average to determine trends and gauge future releases. This is because employment is a lagging indicator and is vital in determining the strength of an entire economy. Japan and the United States are just two nations of many that are major trading partners. If Germany's sneezes, the rest of the world is at risk of catching a cold. (For more read our Economic Indicators Tutorial.)

Germany's Employment Statistics
Currently, the Federal Statistics Office, an agency within the Federal Interior Ministry in Germany, compiles, analyzes and releases monthly employment information that covers three categories: the economically active population, persons employed and the unemployed. This information is compared in a clear table to unemployment rates in other European States, Japan and the United States. With a current population of 82 million, Germany reported an employed workforce of 40.01 million in August 2009, a decrease of 216,000, or .05 percent, from the previous year. Overall, the unemployment rate in Germany decreased at a steady rate between 2006 and 2009. (From unemployment and inflation to government policy, about macroeconomic measures and how they affect economies in Macroeconomic Analysis.)

Germany tracks its industries by a Production Index that covers six categories: total production industries, production industries excluding building services, mining and quarrying, manufacturing, energy supply and site preparation, and civil engineering.

Many statistics can be found using these numbers. For example, as of 2009, 4.5 million persons were employed through public services or government, but that number is decreasing as Germany continues its privatization of basic government services such as waste management.

For the monthly employment release, the Federal Statistics Office tracks those who are registered as unemployed, registered job offers, the apprenticeship market, employment integration, marginal work, persons employed subject to social insurance and recipients of benefits. (Find out how to work the system to get the highest total benefits the law allows. See 4 Unusual Ways To Boost Social Security Benefits.)

Until 2007, the Federal Statistics Office counted the number of persons in employment and employment divided by a population ratio; underemployment and unemployment rates were published on a monthly basis as part of the ILO economic release. The unemployment rates were broken down by sex and age for East and West Germany. Now, the Federal Statistics Office tracks seasonally adjusted unemployment figures and rates and breaks them all down by age and sex.

Conclusion
The effects for traders regarding the health of the euro in monthly ILO reports is of vital importance. For example, when the September 2009 reports were released and showed a rise in the unemployment rate to 8.3 and a loss of 20,000 more monthly jobs, the euro dropped against the United States, EUR/USD 87 points in seconds. In on small measure, the health of the euro rests on a healthy German economy.

Related Articles
  1. Economics

    Explaining Economic Indicators

    Investors use economic indicators to gauge investment opportunities and judge the overall health of an economy.
  2. Markets

    The (Expected) Market Impact of the 2016 Election

    With primary season upon us, investor attention is beginning to turn to the upcoming U.S. presidential election.
  3. Term

    How Statistical Significance is Determined

    If something is statistically significant, it’s unlikely that it happened by chance.
  4. Economics

    3 Charts All Investors Should See

    Given the abysmal start to the year, the defining question is whether this is another painful but temporary correction, or the start of a bear market.
  5. Fundamental Analysis

    How Globalization Affects Developed Countries

    The increase in communications technology has companies competing in a global market.
  6. Economics

    3 Economic Challenges France Faces in 2016

    Learn about the three most significant economic challenges facing France in 2016. How will France implement reforms to improve its GDP and reduce unemployment?
  7. Investing

    2 Opportunities Amid Today’s Market Volatility

    As you prepare your portfolio for the market volatility ahead this year, here are a few investing ideas to consider.
  8. Chart Advisor

    ChartAdvisor for January, 22 2016

    A weekly technical summary of the major U.S. indexes.
  9. Mutual Funds & ETFs

    3 ETF Strategies for Growth in Europe for 2016 (FXEU, DFE)

    Learn about the outlook for European economies and how European equities could be poised for a more prosperous 2016 than U.S. equities.
  10. Forex Strategies

    How To Build A Forex Trading Model

    The forex market is volatile, but a forex trading model with clear, step-by-step rules based on a sound strategy can help decrease losing trades.
RELATED FAQS
  1. Do plane tickets get cheaper closer to the date of departure?

    The price of flights usually increases one month prior to the date of departure. Flights are usually cheapest between three ... Read Full Answer >>
  2. Is Germany a developed country?

    Germany is a developed country. A country with a developed economy typically exhibits strong gross domestic product (GDP), ... Read Full Answer >>
  3. Is Colombia an emerging market economy?

    Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >>
  4. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  5. How is the value of a pip determined?

    A pip in foreign exchange trading is a measure of a price movement in a currency pair. "Pip" is an acronym for price interest ... Read Full Answer >>
  6. What economic indicators are important to consider when investing in the retail sector?

    The unemployment rate and Consumer Confidence Index (CCI) rank as two of the most important economic indicators to consider ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center