Job Opportunities - Decreasing unemployment levels, yet insignificant progress in the labor market.
Reduced labor force: The number of unemployed individuals in Thuringia in May compared to the past month has slightly deceased, dropping by 1,400 to 67,800 people as per the announcement made by the Regional Directorate of the Federal Employment Agency in Halle on Tuesday. The jobless rate also slightly declined from 6.3% to 6.1%. In May of the previous year, there were 63,100 unemployed and the rate was 5.8% at that time.
General workforce reduction: Nationwide, the unemployment rate in May this year decreased by 0.2 percentage points to 5.8% compared to the previous month. The head of the Regional Directorate of the Federal Employment Agency, Markus Behrens, mentioned a "muted economic sentiment."
Dissection of the labor market: Behrens added that the labor market is divided. He clarified that while the overall rate in May was 6.1%, the share for skilled workers was significantly less. The average unemployment rate for skilled workers was 4%, while it was 30% for less qualified individuals. Highly trained employees are in high demand due to several reasons. He elaborated that businesses face challenges like digitalization, automation, energy transition, and consequential skills shortage, which slows down the job dynamics.
Diminished job demand: The Europäische Agentur für die Arbeitsbeschaffung reported a decrease in overall job demand. About 2,700 new openings were reported in May, which was 200 fewer than the previous month and nearly 300 fewer than the number of new jobs a year ago.
Stagnant long-term unemployment: The Regional Directorate reported limited progress in reducing long-term unemployment. Around 23,500 individuals were jobless for over a year in May, about 3,100 more than a year ago, and roughly 150 fewer than the previous month. The rate of long-term unemployed among all jobless individuals in May was 34.6%.
Regional disparities: The highest unemployment rates were in Thuringia overall with 9.6% in Gera, 9.1% in the Altenburg district, and 8.3% in the Nordhausen district. The districts with the fewest unemployed were Eichsfeld with 4.2%, Weimar district with 4.4%, and Hildburghausen district with 4.5%.
Recorded data: The Regional Directorate used data up to May 15 for the statistics.
