Labor market - Authority anticipates further rise in unemployment
The employment service in Saxony is expecting a further increase in unemployment this year. It is more likely to move towards "seven decimal points" than "five decimal points", said Klaus-Peter Hansen, head of the employment agency in the state, in Dresden on Wednesday. In December, the unemployment rate was 6.2 percent, 0.1 percentage points higher than in November. Nationwide, Saxony is in the middle of the pack with this rate. The head of the authorities emphasized that in no month last year was the rate below six percent.
"In view of the economic situation, the existing risks and general conditions, the Saxon labor market still got off lightly in 2023," said Hansen. For 2024, however, he expects less good news from the labor market due to the prevailing uncertainties. Unfortunately, little will change in the medium term.
"On the one hand, skilled workers and employees are in demand in many sectors. Demand is expected to remain high in 2024. At the same time, the number of unemployed is rising," explained Minister of Economic Affairs Martin Dulig (SPD). It must be possible to bring the two sides of the Saxon labor market together even better. "People who lose their jobs must not remain unemployed for long. Further training and leveraging all employment potential are particularly important. This is where we are doing all we can."
Hansen's assessment of the past year was mixed. "2023 is a good example of the risks and opportunities of a transformation," said Hansen. We have reached the peak in terms of employment. "We have reached the summit." The structure of employment in particular has changed. Declines have been recorded in the manufacturing sector in particular. Hansen pointed to factors such as high energy prices, the cost structure of companies and declining order volumes. "I don't see the relief."
In total, more than 132,000 men and women in Bavaria were without a job at the end of 2023. Within a year, their number grew by 9875 or 8.1 percent. On an annual average, the statistics show around 131,000 unemployed, around 12,900 more than the average for 2022.
There are significant regional differences in Saxony. The district of Central Saxony had the lowest unemployment rate in December at 5.0 percent, while the highest was in the district of Görlitz (8.7 percent) and the city of Chemnitz (8.5 percent). In the case of Chemnitz, Hansen attributed this primarily to the high proportion of unemployed foreigners. As rents in Chemnitz are comparatively low and the city offers sufficient living space, many people remain in the city after initial admission. In the case of Görlitz, the possibility of commuting to other regions is limited due to the border location.
In December, 11,871 refugees from Ukraine were registered as unemployed in Saxony, 16.5 percent more than a year ago. The proportion of foreigners in unemployment has risen continuously, it was reported. They would not meet the immediate requirements for employment. Hansen referred to a lack of language skills and a lack of recognition of qualifications. The proportion of foreign unemployed has risen to over 25 percent. The proportion of foreigners in employment in Saxony is eight percent, compared to 15 percent nationwide.
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- The Federal Employment Agency in Saxony, responsible for addressing unemployment, forecasts a further increase in unemployment rates this year.
- The unemployment rate in Chemnitz, a city in Saxony, was notably higher than the average in December, contributing to the region's high unemployment rate.
- To combat the rising unemployment, the Minister of Economic Affairs emphasized the importance of further training and leveraging all employment potential to help unemployed individuals quickly re-enter the labor market.
- In the district of Central Saxony, the unemployment rate was the lowest, while in Görlitz and Chemnitz, it was significantly higher, with the latter's high unemployment rate largely due to the high proportion of unemployed foreigners.
Source: www.stern.de
