Anticipated Temporary Sluggishness in the Job Market
As autumn arrives, the labor market is typically revitalized. Yet, the economy's sluggish performance has caused companies to postpone new hires, leading to an increase in unemployment. The employment agencyIssued a warning: If the economy fails to recuperate, unemployment could hit a decade high once more.
The decline in Germany's labor market, due to the economy's poor health, persisted throughout September. Unemployment figures climbed higher. The Federal Employment Agency declared that a total of 2,806,000 individuals were unemployed, representing a rise of 179,000 compared to the previous year. The agency director, Andrea Nahles, expressed concern, stating, "The labor market's autumn revival is progressing at a slower pace this year."
Unless remedial actions are taken, unemployment is likely to surge by year-end. Ah, and there's a chance that we might surpass the three-million mark again in the spring, if things remain the same, said the previous labor minister. "It's just a projection," he emphasized, "but it could very well come to fruition." According to the Federal Employment Agency's statistical time series, the unemployment figure last surpassed the three-million mark back in February 2015, with 3,017,000 individuals.
On a monthly basis, the number of unemployed individuals decreased by 66,000. However, this decrease was less than usual for this particular month. The unemployment rate dropped slightly to 6.0 percent, yet it increased by 0.3 points year-over-year. The poor performance of the labor market hasn't wavered throughout the year. The Federal Employment Agency attributes this mainly to the economic stagnation faced by Germany.
September, following the summer break and the commencement of the new training period, is usually when we see a typical autumn revival. Yet, after accounting for seasonal fluctuations, the number of unemployed individuals actually increased by 17,000 from August to September, as per the Federal Employment Agency's data. Moreover, 890,000 individuals received unemployment benefits in September, which was an increase of 107,000 compared to the previous year.
Germany's labor market showed signs of economic stagnation even in August. Unemployment and underemployment continued to climb during the summer break. It was hoped that we would witness a recovery from September onwards.
In a comparison of the federal states, Bremen reports the highest unemployment rate with a quota of 11.1 percent, followed by Berlin with 9.8 percent. Conversely, Bavaria boasts the lowest unemployment rate, with 3.8 percent, while the Free States of Thuringia and Brandenburg are Eastern Germany's least affected states, both with an unemployment rate of 6.1 percent.
The economic stagnation has led to an ongoing increase in unemployment, with the employment agency warning of potential record highs. If remedial actions aren't taken, the number of unemployed individuals could surpass the three-million mark again.
