Struggling job market - rising unemployment rates
Autumn usually brings a resurgence in job opportunities, but Germany's economy is struggling. Companies are reluctant to hire new employees, leading to an increase in unemployment compared to last year. As per the Federal Employment Agency, a staggering 2,806,000 individuals were jobless as of September, a significant jump of 179,000 from the previous year. "The promised autumn job market revival is progressing at a snail's pace this year," commented the agency's head, Andrea Nahles.
On a monthly basis, the number of unemployed individuals decreased by 66,000. However, this decrease is lower than typical for this period. The unemployment rate dipped slightly by 0.1 percentage points to 6.0%, but it rose by 0.3 percentage points compared to the same period last year. The entire year has seen a subpar performance in the job market, with the German economic stagnation being the main culprit, according to the BA.
After accounting for the seasonal effect following the summer break and the start of the new training year, the BA reported an increase of 17,000 unemployed individuals from August to September. Additionally, 890,000 individuals received unemployment benefits in September, a rise of 107,000 compared to the previous year.
The job market in Germany began showing signs of economic stagnation in August. Joblessness and underemployment continued to escalate during the summer break, with a full recovery expected from September onwards.
Comparatively, Bremen has the highest unemployment rate with a share of 11.1%, followed by Berlin at 9.8%. The least unemployment can be found in Bavaria with a rate of 3.8%. The Free States of Thuringia and Brandenburg are the eastern German states with the lowest unemployment rate at 6.1% each.
The Federal Agency for Labour reported an increase of 17,000 unemployed individuals from August to September, despite the seasonal effect. As of September, the agency reported a staggering 2,806,000 individuals receiving unemployment benefits, a significant increase from the previous year.
