Nuremberg, Berlin The number of unemployed in Germany fell to 2.544 million in May. That was 42,000 fewer than in April, but 284,000 more than a year ago, as the Federal Employment Agency (BA) announced on Wednesday. The rate fell by 0.2 points to 5.5 percent in May.
“Despite the weak economy, the labor market is stable overall,” said Daniel Terzenbach, head of the Federal Employment Agency. “Employment growth continues, but is losing momentum.” Unemployment and underemployment – where people are registered in measures such as integration courses – have fallen, but less than usual for May.
A look at the seasonally adjusted figures also shows this: As a result, the number of unemployed increased by 9,000 in May. Even without the refugees from Ukraine, unemployment would have risen compared to the same month last year, albeit less sharply. For the statistics, the Federal Agency took into account figures that were available up to May 11th.
Unemployment usually falls in the spring because companies are looking for more workers again after the winter. However, the spring revival depends, among other things, on the economic situation and the weather – and therefore varies from year to year.
Short-time work has increased slightly: From May 1st to 24th, companies reported short-time work for 45,000 employees. Experience has shown that the number of people who actually go on short-time work is lower. Up-to-date data on how many people claimed short-time work benefits is available up to March: 133,000 people were employed that month, after 140,000 in February.
Demand for labor falls
Meanwhile, the demand for workers in Germany continues to decline – and has been falling steadily for a year. In May, the BA-X job index fell by two points to 122 points. That is 17 points fewer than a year ago, when the index had reached an all-time high, the authority announced on Tuesday in Nuremberg.
According to the Federal Agency, from April to May 2023 the number of registered jobs increased slightly in only a few sectors of the economy.
(Photo: dpa)
The job index is based on job applications registered with the employment agency. The average for 2015, which was set at 100, serves as a reference value. With currently 122 points, the job index is still at a high level despite the economic problems.
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According to the Federal Agency, from April to May 2023 the number of registered jobs increased slightly in only a few sectors of the economy. In most sectors, it has mostly fallen in the double-digit percentage range, particularly sharply in the information and communication professions, followed by the hospitality industry and agriculture and forestry. According to the Federal Statistical Office, 45.6 million people were employed in Germany in the first quarter.
Agreed wages rose by 2.7 percent in the first quarter
The earnings of the millions of employees with a collective bargaining agreement also rose significantly more slowly than consumer prices in the first quarter. According to the Federal Statistical Office on Wednesday, agreed monthly earnings including special payments grew by an average of 2.7 percent from January to March compared to the same period last year. That was not nearly enough to offset the increase in consumer prices: the inflation rate averaged 8.3 percent in the first quarter.
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In some sectors, however, the degrees were higher. In the hospitality industry (+10.4 percent) and other economic services – which also include temporary work (+8.4 percent) – the strong percentage increases in gross monthly earnings were the main factors. In the manufacturing sector, on the other hand, gross monthly earnings increased by only 1.0 percent, while special payments rose by a strong 9.9 percent.
In the areas of public administration, defence, social security (-1.5 percent), education and training (-1.8 percent) and art, entertainment and recreation (-1.7 percent), collective wages developed negatively. According to the information, this is due in particular to the corona premiums paid in the same quarter of the previous year, which are now no longer received and are therefore not included in the calculation.
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The trade unions are trying to push through significantly higher degrees because of the sharp increase in the cost of living. For the more than 800,000 employees in temporary work, for example, there is an agreed two-stage wage increase of up to 13 percent. Among the 2.5 million employees in the public sector at federal and state level, the lower salary groups see an increase of 16 percent at the end of the term, according to union information, other areas of more than eleven percent.
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