No good news from the German labor market: The weak economy caused unemployment figures to rise more than usual in July.
The number of unemployed people in Germany rose more sharply in July than usual at this time of year. According to the Federal Employment Agency, the number of people without a job rose by 82,000 to 2.809 million compared to the previous month. The rate was 6.0 percent, which is 0.2 points more than in June.
The economic momentum of the German economy has now leveled off again, according to the monthly report of the Federal Agency. “The weak economic development is putting pressure on the labor market. At the beginning of the summer break, unemployment and underemployment rose more than usual,” said board member Daniel Terzenbach, according to the statement. Compared to the same month last year, the number of unemployed people even rose by 192,000.
At the same time, the number of job vacancies reported to the Federal Employment Agency also fell. 703,000 vacancies were registered, which is 69,000 fewer than a year ago.
Training market still in motion
The Federal Agency still sees movement in the training market. 121,000 registered applicants had not yet found a training place or an alternative training opportunity in July. In contrast, there are 204,000 reported vacancies at companies. The numbers are likely to decrease further over the summer months, it said.
According to current data from the Federal Employment Agency, short-time work was reported for 58,000 people between July 1 and 25 – a good third more than in the previous month. It is unclear whether the short-time work will actually be used. With the report, companies only report the expected loss of work.
Source: Stern
