Labor offices see no turnaround for the better yet.
German labor offices do not expect a short-term recovery on the German labor market. "Unemployment might increase at a slower pace, but it's not enough for a turnaround yet", explained Enzo Weber from the Institute for Labor Market and Vocational Research (IAB).
In the monthly survey among the local branches of the Federal Employment Agency (BA), the assessments for the development of employment therefore stood at 102.5 points in July, a decrease of 0.2 points. The component for unemployment improved slightly more, by 0.5 points, but remained in the negative range at 98.3 points. The IAB labor market barometer therefore increased by 0.3 points to 100.4 points.
"The labor market outlook has been largely unchanged for a year", said Weber. "Economic impulses are important." The Federal Employment Agency will present the unemployment figures for July on a Wednesday. In the summer month of July, an increase in the number of unemployed in comparison to June is usual due to the beginning of the vacation season. In addition, the labor market situation caused by the weak conjuncture had continued into June with an increase in the number of unemployed by 4000 to 2,727 million.
Despite the slight improvement in the unemployment component, German labor offices still anticipate a trend shift towards an extended period of uncertainty in the labor market. Furthermore, the positive statements about the labor market in the German language have been scarce, with only a few instances of 'Good' being used to describe the situation.
