Unemployment - The labor market lacks impetus
In the outlook for the German labor market, there is barely any dynamism. "The labor market outlook has remained largely unchanged for a year. Monetary impulses would be important," said Enzo Weber from the Institute for Labor Market and Vocational Research (IAB) in a statement. The IAB forecast indicator rose by 0.3 points compared to June, reaching 100.4 points and remaining in the slightly positive range.
The Institute surveys German employment agencies monthly on their forecasts for the next three months for the labor market barometer. A score of 90 represents a very poor development, while 110 indicates a very good one. The barometer also includes separate components for predicting unemployment and employment.
The employment component improved slightly in July. It rose by 0.2 points to 102.5 points. The unemployment component increased by 0.5 points to 98.3 points. "Unemployment could be rising more slowly, but there's not enough for a trend reversal yet," commented Weber. The Federal Employment Agency will present its latest statistics on Wednesday (31. July).
The stagnant labor market situation in Germany has led the International Association of Applied Economists (IAA) to discuss potential impulses at their annual conference in Nuremberg with Enzo Weber from the IAB acting as a key speaker. Despite the IAB forecast indicator showing a slight improvement, Enzo Weber expressed concern about the rising unemployment rate, highlighting that it could still be decreasing at a slower pace. The conjuncture of the German labor market remains challenging, with the IAB urging policymakers to consider targeted measures to stimulate job creation and alleviate unemployment.
