The economic prospects are poor. This could also have consequences for the labor market.
According to a forecast, unemployment will increase in all federal states next year as a result of the weak economy. In eastern Germany, the unemployment rate is expected to rise by 0.2 percentage points to 7.6 percent in 2025, and in western Germany by 0.1 percentage points to 5.7 percent, according to the study by the Institute for Labor Market and Occupational Research (IAB) in Nuremberg. Employment will therefore grow by 0.6 percent in the west and will stagnate in eastern Germany.
The economic environment remains uncertain, said IAB expert Rüdiger Wapler. “A faster recovery in consumption and stronger foreign trade are likely to have positive effects. If trade conflicts escalate or geopolitical tensions continue to increase, developments in the regional labor markets could deteriorate.”
According to the forecast, the largest relative increases in unemployment figures will be in Thuringia, Mecklenburg-Western Pomerania, Saxony and Bavaria next year. Relative unemployment is increasing the least in Lower Saxony, Bremen and North Rhine-Westphalia. Employment subject to social insurance contributions is increasing most rapidly in Hamburg, North Rhine-Westphalia and Hesse. In Thuringia and Saxony-Anhalt, however, it is decreasing most significantly.
Source: Stern
