Employment agency expects slight rise in unemployment
Scientists at the Institute for Employment Research (IAB) expect a slight rise in unemployment in Saxony-Anhalt in the coming year. In a medium scenario, the IAB expects the unemployment rate to rise by 0.5 percent compared to the annual average for 2023, as the institute announced on Monday. Across Germany, the researchers expect an increase of 2.1 percent.
Due to the geopolitical situation, the forecasts are characterized by uncertainty, explained Markus Behrens, Chairman of the Regional Directorate of the Employment Agency. "In the coming year, however, it will continue to be difficult to end unemployment." In addition to economic risks, the shortage of skilled workers poses further major challenges. However, the range of calculations for the unemployment rate is wide. In the most favorable scenario, the researchers expect unemployment to fall by 9.5 percent, while in an unfavorable scenario it would rise by 10.4 percent.
Overall, the employment agency anticipates a slight decrease in the number of people in employment in Saxony-Anhalt of 0.2%, while a slight increase is expected nationwide. The IAB sees the reasons for this primarily in the demographic development of the federal state.
The upcoming rise in unemployment in Saxony-Anhalt could significantly impact the local labor market. Despite the employment agency's expectation of a slight decrease in employment in the state, it may still be challenging to reduce unemployment due to the forecasted increase.
Source: www.dpa.com
