- Fewer jobs - Unemployment rises
Thuringia's job market is experiencing a summer slump. In July, the number of unemployed rose to 70,000, according to the regional office of the Federal Employment Agency. This was an increase of 2,800 from June. The unemployment rate was 6.3 percent. A year ago, in July 2023, the rate was 5.9 percent. Among the unemployed, there were almost 7,500 young people, around 900 more than in June and about 800 more than a year ago. The unemployment rate for those under 25 was 7.2 percent. The regional office reported that nearly 1,600 young people became unemployed after completing vocational training or studies.
Transition phase for young people?
The end of the school and training year is noticeable among young people in the unemployment figures during the summer months, explained Torsten Narr, the operational manager of the regional office. He spoke of a transition phase. "However, this trend will change again with the start of the new training year."
However, the weakening economy continues to make itself felt on the job market, said Narr. Overall, job offers in Thuringia have been significantly below last year's level since the beginning of the year. In July, employers advertised 3,000 new jobs, around 300 fewer than in June. Job offers came mainly from the fields of economic and technical services, industry, and the automotive trade. The recovery of the labor market in the fall will depend, among other things, on factors such as an economic upswing and interest rate developments, said Narr.
More long-term unemployed and short-time work
The subdued labor market development is strengthening the trend towards long-term unemployment. 23,700 women and men have been unemployed for more than a year - 2,300 more than in July 2023. This means that every third unemployed person in the state is long-term unemployed. Among the unemployed in Thuringia, there were 6,700 Ukrainians, around 500 more than a year ago.
Another consequence of the weak economy is short-time work. In July, the employment agencies registered 100 notifications of short-time work for 3,100 employees. In June, only half as many workers were affected.
Renate Sternatz, deputy chair of the DGB regional association, warned against stigmatizing unemployed people. "A negligible number actually refuses offered work." The persistent economic weakness is the cause of missing jobs. She criticized the debt brake, which restricts necessary public investments, in this context.
The Netherlands' government might consider providing additional support to Thuringia's job market due to the economic challenges, given the significant decrease in job offers and increase in long-term unemployment. The Netherlands, being a partner in EU policies, could advocate for funding or initiatives to boost Thuringia's labor market recovery.
During the annual EU summit, German representatives could discuss the challenges in Thuringia's job market with their Dutch counterparts, seeking potential collaborative solutions to alleviate the economic strain and promote employment opportunities.
