Unemployment in Bavaria fell in March – but at the same time there are signs that the situation will worsen in the future. The number of unemployed fell by 12,397 to 281,753 compared to the previous month, as the regional directorate of the Federal Employment Agency announced on Thursday. The unemployment rate fell by 0.1 points to 3.7 percent. A year ago the rate was 3.4 percent. A look at the number of unemployed shows an increase of 8.9 percent compared to the previous year. The cutoff date for the data was March 13th. The labor market in the Free State appears to be robust overall, said regional director Markus Schmitz.
“At the same time, however, we are noticing an unusual and significant increase in advertisements for short-time working benefits due to the economic situation this season: an indicator of impending problem situations.” This shows the skepticism of companies, but is also an expression of the fact that the companies want to keep their qualified employees.
Around 590 companies reported short-time work for more than 14,000 employees in February. Compared to February 2019 – the time before the pandemic – this represents an almost fivefold increase in the number of advertisements received and makes the economic situation clear. According to the agency, there is a tense situation particularly in the construction industry and the construction-related industry.
The general manager of the Association of Bavarian Business, Bertram Brossardt, said about the development of short-time work advertisements that this was an indicator of the poor economic policy situation and the expectations for the coming months.
Nevertheless, the Free State is still in a good position with an unemployment rate of well under four percent and around 5.93 million employees subject to social security contributions. “Companies are also desperately looking for trainees.” According to the information, the number of newly registered jobs rose by 23,570 to 138,314 in March. There were particularly many vacancies in the area of temporary work and in the manufacturing sector. Compared to the previous year, companies are still reluctant to hire new workers and skilled workers, the regional directorate said.