- Unemployment rises - rate at 7.6 per cent
The number of unemployed people in North Rhine-Westphalia has increased. In July, 763,382 people were registered as unemployed, which is around 20,267 more than in June, the Federal Employment Agency in Düsseldorf reported. The unemployment rate stands at 7.6 percent, which is 0.2 percentage points higher than in June.
Part of this increase can be explained by the usual seasonal trend: more people are job hunting in the summer than in the autumn when the new training year begins and young people start earning a living. Additionally, many training and qualification measures end at the halfway point of the year, and some participants then become unemployed again.
However, the development cannot be fully explained by seasonal fluctuations, as the unemployment rate a year ago, in July 2023, was only 7.4 percent, which is 0.2 points lower. Since then, the number of unemployed people has increased by around 38,500. Compared to the long-term July average, the current number is also 4,000 higher.
Companies are holding back
The head of the North Rhine-Westphalia regional directorate of the Federal Employment Agency, Roland Schüssler, attributes the development to the difficult economic situation of many companies. Employers have done everything they can to keep their employees despite economic challenges. "However, they have hired new and additional staff much less frequently," says the labor market expert. "That's why many people have remained unemployed even during the usual seasonal upturns in the past two years."
The situation varied across the regions of the most populous federal state: The Münsterland had an unemployment rate of only 2.8 percent in mid-July, while Ostwestfalen-Lippe had 3.3 percent and South Westphalia had 3.9 percent. The Bergisches Land recorded an unemployment rate of 7.3 percent and the Rhineland had 7.4 percent. The Ruhr region was, as usual, the regional leader with 10.2 percent.
Situation of Ukrainians on the NRW labor market
Meanwhile, the authority reported progress in integrating Ukrainian women and men into the labor market. The number of these fellow citizens had increased after the beginning of the Russian invasion in 2022. In May 2024 - the latest figures available - 35,700 Ukrainians were employed in North Rhine-Westphalia on a social security basis, which is around 25,700 more than at the beginning of the war.
Compared to the previous month of April 2024, this was an increase of 1,800. It has never been possible for so many Ukrainians to find a socially insured job in North Rhine-Westphalia within a month, the Federal Employment Agency said. In July, 46,993 Ukrainian citizens were registered as unemployed in NRW.
- Despite the integration efforts for Ukrainian workers, the increase in employment and social security contributions for Ukrainian citizens in North Rhine-Westphalia has not significantly impacted the overall unemployment numbers.
- To address the rising unemployment rate, the government should consider implementing policies to support employment and social security, such as job training programs and incentives for companies to hire more workers.
