In the midst of the economic downturn, the number of unemployed in Germany rose more sharply in August than is usual in this month. “The summer break and the weak economy are leaving their mark on the labor market,” said the head of the Federal Employment Agency (BA), Andrea Nahles. The BA recorded 2.696 million unemployed in August. That is 79,000 more than in July and 148,000 more than a year ago. The unemployment rate rose by 0.1 points to 5.8 percent. Nevertheless, the labor market is still in “solid basic condition”, explained Nahles.
Higher unemployment is common in the month of August before there is usually a little more momentum in the labor market with the end of the summer holidays and the start of the new school year. “But the increase this year is relatively large,” says Nahles. Taking into account the seasonal fluctuations, the number of unemployed rose by 18,000 in August. Experts had expected less. According to Nahles, a short-term recovery on the job market is not in sight. On the other hand, it is to be expected that the current trend will continue until the end of the year.
According to experts, people need to be better qualified
The background to the slowdown on the labor market is the weak economy: the German economy has not grown for three consecutive quarters. Rising interest rates, high inflation and the sluggish world economy with China, the economic powerhouse, are causing her problems. Added to this are the consequences of the Ukraine war, from which around a million people fled the country to Germany. As before, employers are cautious when it comes to looking for new staff, said Nahles. This view is also confirmed by the employer-oriented Institute IW. Although no major redundancies are to be feared, the unemployed are having increasing difficulties finding new employment. In August, 771,000 jobs were registered with the BA, 116,000 fewer than a year ago.
According to KfW chief economist Fritzi Köhler-Geib, there is a need for action on the labor market. One thing above all is required to further reduce unemployment: qualifications. Nationwide, there are 1.7 million vacancies compared to around four million people who receive basic security for job seekers: “In terms of numbers, we even have a surplus of workers in Germany. However, job seekers often lack the necessary qualifications.”