Job Opportunities - Employment declines observed in May; summer anticipates an increase.
During the summer season, the Federal Employment Agency predicts a minor rise in unemployment in Saxony. This is due to a large number of students graduating from school and training, which seasonally affects the figures. Additionally, businesses are being more careful about rehiring or advertising job openings. As a result, fewer job opportunities have been reported in comparison to a year ago. This is a consequence of the economic slump, said the expert. Right now, approximately 36,000 job openings are available.
In May, unemployment in Saxony, as projected, dropped once more. However, it is still higher than the previous year. Not all regions had the same level of improvement. The most significant decreases occurred in the regions of Zwickau, Vogtland, and Saxon Switzerland-Ore Mountains. On the other hand, unemployment in Dresden and Leipzig stayed relatively stable, while there was a 1.3% rise in Mittelsachsen.
In total, Saxony had 137,600 unemployed people last month, a decrease of approximately 1,600 compared to April, reported the Regional Directorate. The unemployment rate dropped by 0.2 percentage points to 6.4%. The decrease in unemployment rate was due to the typical resurgence of the labor market during spring, according to Ungethüm. A year ago, there were approximately 9,400 fewer unemployed people than there are now, and the rate was 0.4 percentage points lower.
The districts of Erzgebirge, Zwickau, and Saxon Switzerland-Ore Mountains have the lowest unemployment rates, at 5.2%. Meanwhile, the district of Görlitz and the city of Chemnitz still have the highest rates, at 8.9% and 8.8%, respectively.
Employment in Saxony remains relatively high, but it has recently decreased. According to calculations, 1.64 million people held socially insured jobs in March, a reduction of 2,400 compared to the same month in the previous year. Despite this, the numbers were higher in 2022 and 2023 than now. Compared to the record low of March 2006, there are now 330,000 more employed people.
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- The upcoming summer in Saxony, overseen by the Federal Employment Agency, is anticipated to witness a minor rise in unemployment due to seasonal effects from graduating students and cautious business hiring practices.
- In contrast to the reduction in unemployment observed in May across Saxony, the labor market statistics for the summer month may indicate a minor increase in unemployment rates, particularly in regions like Chemnitz and Zwickau.
- While Saxony's unemployment rate has decreased, as per the Federal Employment Agency's statistics, the summer month might present a challenge due to the influx of graduating students and more reserved hiring policies, potentially leading to a higher unemployment rate compared to the previous year.
- During the summer season, the unemployment figures within Saxony's labor market may experience a slight rise as a result of seasonal changes, with cities like Chemnitz and Zwickau potentially feeling the impact more than other areas, due to the increased number of job seekers and employers being cautious with job openings.
