Financial hardship triggers an increase in joblessness
The German economy's sluggishness is reflected in the job market. Businesses are less eager to hire, while the population eagerly seeks employment. However, opportunities in training roles appear more promising.
Unemployment in Germany climbed by 63,000 in August, reaching a three-and-a-half-year high of 2.872 million. This figure represents an increase of 176,000 compared to August 2021, as announced by the Federal Employment Agency. The unemployment rate subsequently rose by 0.1 percentage points to 6.1%.
"The labor market continues to endure the impact of economic stagnation. Unemployment and underemployment have escalated during the summer break," Andrea Nahles, chairperson of the board, commented.
The need for labor force in companies also wanes. August recorded 699,000 open positions, a decrease of 72,000 from the previous year.
Short-time work is increasingly prevalent. The Federal Employment Agency disbursed short-time work allowances for 232,000 employees in June, an increase from 215,000 in May and 223,000 in April.
The training market, however, presents a more positive outlook. During the period from October 2023 to August 2024, 418,000 young individuals registered as job seekers for training roles, a 10,000 increase compared to the previous year.
In August, 82,000 individuals failed to secure a training position or an alternative. Conversely, 158,000 of the total 502,000 training positions remained vacant. By the end of September, the Federal Employment Agency expects a substantial decrease in the number of unemployed applicants and unfilled training positions, maintaining a dynamic job market.
The Federal Employment Agency, which is the Federal Agency for Labour in Germany, announced an increase in unemployment by 176,000 compared to August 2021. Despite this, they noted a surge in the number of young individuals registering for training roles, totaling 418,000 from October 2023 to August 2024.
