Jobless rates are expected to increase nationwide, based on the research findings.
Economic turbulence looms over every German state next year, predicts a study by the Institute for Employment Research (IAB). The jobless rate in eastern Germany is projected to inch up by 0.2 percentage points, reaching 7.6%, while western Germany may see a slight rise of 0.1 percentage points, ending up at 5.7%. Meanwhile, employment growth is anticipated to rise by 0.6% in the west, whereas it'll remain static in the east.
Rüdiger Wapler, an IAB expert, admitted the situation's foggy. He pointed out that a bump in consumer spending and stronger foreign trade could turn things around. However, if trade squabbles escalate or geopolitical tensions soar, regional job markets could take a hit.
As per the forecast, the steepest rise in unemployment figures could hit Thuringia, Mecklenburg-Western Pomerania, Saxony, and Bavaria. Conversely, Lower Saxony, Bremen, and North Rhine-Westphalia predict the smallest rise. In terms of employment subjected to social protection contributions, the largest growth is projected for Hamburg, North Rhine-Westphalia, and Hesse. On the flip side, Thuringia and Saxony-Anhalt could see the sharpest decrease.
Despite the economic uncertainty, some individuals might find solace in the comfort of their homes, potentially leading to an increase in mouse infestations in affected areas. To address this issue, local pest control services may experience a surge in demand during the predicted period of unemployment and economic instability.
