In October there were a good 2.4 million unemployed in Germany.
(Photo: dpa)
Berlin Despite the economic impact of the war in Ukraine and the energy crisis, the labor market in Germany is proving to be robust. The Federal Employment Agency (BA) also registers the autumn revival that is usual for the time of year. “But this revival will be muted this October,” said BA CEO Andrea Nahles on Wednesday at the presentation of the labor market data in Nuremberg.
The number of unemployed fell to a good 2.4 million in October. That is 43,000 fewer than in September, but 65,000 more than a year ago. The unemployment rate fell by 0.1 percentage points to 5.3 percent.
However, the decline compared to the previous month was somewhat weaker than in previous years. Seasonally adjusted, the number of unemployed even rose slightly by 8,000.
Unlike in the previous months, this is no longer primarily due to the registration of refugees from Ukraine, said Nahles. “Our interpretation is that it is the consequences of the economic slowdown.”
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However, employment continues to grow, even if the economic environment is very tense. However, the consequences of the uncertainties are visible: “More companies are preparing for possible short-time work and reducing their demand for new staff.”
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According to data from the BA, companies reported short-time work for 82,000 people from October 1st to 26th. Actual usage data is available up to August. In that month, the BA registered 106,000 short-time workers. The manufacturing sector is particularly affected at the moment.
No signs of a slump in the labor market
Out of concern that they would no longer be able to find staff later, companies tried to keep their employees if possible, said Nahles. The search for suitable young professionals is now a challenge for many. But: “Companies are becoming much more reluctant to hire employees.” This is also one of the reasons why unemployment has risen slightly after seasonal adjustment.
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Overall, however, the labor market is proving to be robust given the difficult economic environment. Employment subject to social security contributions continues to be “extremely high”. A slight increase in seasonally adjusted unemployment is to be expected for the coming months, emphasized the head of the BA. However, none of the leading indicators are currently pointing to a slump in the labor market.
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