- Increase in unemployment rate in Bavaria attributed to economic weakness
Economic Struggles and summer Vacation Contribute to Joblessness in Bavaria
Joblessness in Bavaria escalated in August due to economic instability and the summer break. As per the Bavarian regional division of the Federal Labor Agency, 299,652 individuals were jobless in August, a 7.3% surge from July. The unemployment rate increased by 0.3 percentage points to 3.9%. A year prior, the rate was 3.5%.
"The overall sluggish economy is influencing the entire German workforce, including Bavaria," said Peter Michel, deputy director of the regional division in Nuremberg. Seasonal factors also had an impact on unemployment.
Youth Joblessness on the Rise
Unemployment tends to rise during the summer as companies hire less ahead of holidays and apprenticeship contracts finish. As per the regional division, the largest percentage increase, as usual at the end of the training and academic year, was observed among young people. In comparison to July, over 50% more individuals between 15 and 20 were jobless in August. The employment agency utilized data up to August 14 for its statistics.
Despite the economic downturn, the number of socially insured employees in Bavaria continued to climb: According to current estimates, 5.96 million individuals were in socially insured employment in June, a rise of approximately 35,000 compared to the previous year. "Companies are doing their utmost to preserve employment," said Bertram Brossardt, head of the Bavarian Economy Association.
However, the demand for new employees remains low, the regional division stated. In August, more than 21,000 new job vacancies were reported to the Bavarian employment agencies and job centers, a 7% decrease from the previous month and almost 23% less than the previous year.
"Upgrading Skills as Important as Upgrading Your Device"
Young people currently have promising prospects of securing an apprenticeship in Bavaria. Many apprenticeship spots remain vacant at the start of the new training year, said Bavarian Minister of Labor Ulrike Scharf (CSU). According to the regional division, there are 63 applicants for every 100 company apprenticeship spots. From October 2023 to August 2024, around 97,000 apprenticeship spots were reported in Bavaria. More than 60,000 applicants used the apprenticeship placement service of the Bavarian agencies and job centers.
However, a training course typically no longer covers an entire career, Scharf clarified. "Upgrading skills is as crucial today as updating your device, because the world of work is evolving rapidly." This is also reflected in the figures from the regional division: Currently, around 31,000 individuals are participating in a state-funded vocational training course, an increase of around 24% compared to the previous year.
The economic struggles in Bavaria, affecting numerous industries within the region, are not exclusive to it, with Peter Michel, deputy director of the regional division in Nuremberg, noting that the overall economy of Germany is influencing the workforce.
Despite the rising unemployment rates among youth in Bavaria, particularly during the summer, the Bavarian Economy Association's head, Bertram Brossardt, emphasizes that companies are making efforts to preserve employment.
