The German labor market proved to be stable in 2022 despite economic uncertainties. It was an extremely difficult year with multiple burdens such as a pandemic, the Ukraine war, inflation and the energy crisis, said Andrea Nahles, Chairwoman of the Federal Employment Agency. These also left their mark, but in view of the many challenges, these were moderate. “We have also seen here how the economy and the labor market are increasingly decoupling,” said Nahles.
In December the number of unemployed was 2,454,000. That is 20,000 more than in November and 124,000 more than a year ago, the Federal Employment Agency announced. The unemployment rate is 5.4 percent. As is usual at this time of year, unemployment has increased, according to Nahles. In December, a comparatively large number of people normally register as unemployed because many fixed-term contracts expire at the end of the year. In addition, companies are hiring fewer new employees than usual in the last month of the year.
On average over the twelve months, the number of unemployed in 2022 was 2,418,000. This is a decrease of 195,000 compared to 2021. The unemployment rate fell by 0.4 percentage points to 5.3 percent on average over the year compared to 2021.
However, the good situation deteriorated slightly in the second half of the year, according to Nahles. The registration of Ukrainian refugees has caused the numbers of unemployment and underemployment to increase somewhat. Without the Ukrainian refugees seeking employment in the German labor market, unemployment would have fallen in December 2022 compared to December 2021. If, for example, you adjust the special effects from the arrival of Ukrainian refugees in Baden-Württemberg, the federal state has already reached the pre-corona level in terms of unemployment, said the regional agency head Christian Rauch. That is “positive news”.
The number of people who receive short-time work benefits has also fallen significantly after the Corona crisis. In 2021, the annual average was still 1.85 million people on short-time work. According to preliminary estimates, it will only be 430,000 in 2022. However, this is still well above the pre-Corona level of 2019.
From Nahles’ point of view, the year that has just begun will again be marked by uncertainties. Above all, the shortage of skilled workers will be a priority, she said. In 2023, the focus should therefore be on strengthening dual training again, which has suffered badly from the pandemic. The immigration of skilled workers as well as qualification and further training of employees and the unemployed are also important.