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Local Germany
7 days ago
- Business
- Local Germany
Concerns about Germany's job market grow as unemployment falls only slightly
The unemployment rate fell by 0.1 percentage points month on month to 6.2 percent in May, the latest data from Germany's Employment Agency (Bundesagentur für Arbeit, BA) in Nuremberg showed on Wednesday. The number of unemployed people in Germany fell by 12,000 to 2.919 million in May from the previous month, But numbers are up when compared to May 2024: there were around 197,000 more unemployed people in May 2025 than a year earlier. "The labour market is not getting the tailwind it needs to reverse the trend. Therefore, we expect unemployment figures to continue to rise during the summer," BA head Andrea Nahles said on Wednesday. Minister for Labour and Social Affairs Bärbel Bas (SPD) also expressed concern: "The tense economic situation is particularly evident in industry. Jobs are currently at risk in many companies," she said, adding that Germany urgently needed "economic policy stimulus." The number of so-called underemployed people, which includes not only the unemployed but also participants in labour market policy measures and those on short-term sick leave, stood at 3.602 million in May, the Bundesagentur für Arbeit said. This was approximately 58,000 more than in May 2024. READ ALSO: How many German companies are planning to cut jobs in 2025? Analyst Martin Müller of the KfW banking group thinks a turnaround this year is unlikely. "The labour market continues to suffer from the German economy's sales and cost problems," he said, explaining that due to a long period of stagnation, many companies are hesitant to hire new staff. Advertisement However, there is "the prospect" that the investment packages announced by the government will trigger a "noticeable economic stimulus" in the coming years, he said. Bas also pointed to the measures announced by the black-red coalition. The labour market figures "also show how important the new government's economic stimulus and investment programme is," the minister said. Among other things, the government is planning a €500 billion special fund for investments in infrastructure and climate protection. Businesses, meanwhile, called for lower social security contributions and criticised government plans to raise the minimum wage. A "government-led and thus misguided wage policy" would "nip any emerging easing in the labour market in the bud," said Rainer Dulger, President of the Confederation of German Employers' Associations. Lower social spending is "the better path to a healthy labour market," he added. And the German Trade Union Confederation (DGB) board member Anja Piel said continuing education was "the safest means to secure jobs" in uncertain times, adding that it was the right time for a "qualification offensive" by the Bundesagentur für Arbeit and job centres.
Yahoo
28-05-2025
- Business
- Yahoo
German unemployment rate dips to 6.1%, but outlook remains gloomy
Unemployment in Germany dipped slightly in May, official figures showed on Tuesday. The unemployment rate dropped by 0.1 percentage point to 6.2%, the Federal Employment Agency said, with the number of jobless people falling by 12,000 to 2.919 million. The figure was 197,000 higher than in May 2024. The Nuremberg-based agency's chairwoman, Andrea Nahles, said the results showed that the usual spring bump in employment has failed to materialize this year, with economists concerned that the country could be facing a third consecutive year of recession. "The labour market is not getting the tailwind it needs for a turnaround. We therefore expect unemployment figures to continue to rise in the summer," said Nahles. Meanwhile, Germany continues to suffer from a major shortage of skilled workers. Around one in eight professions are experiencing employment bottlenecks, the agency said. "The shortage of skilled labour remains a key challenge for Germany as a business location," said Nahles. Nursing and healthcare professions were particularly affected last year, as well as construction and skilled trades. There was also strong demand for lorry drivers and teachers. A total of 634,000 job vacancies were registered with the Federal Employment Agency in May, around 67,000 fewer than a year ago.
Reuters
28-05-2025
- Business
- Reuters
German unemployment rises by more than expected in May
BERLIN, May 28 (Reuters) - The number of people out of work in Germany rose at faster pace than expected in May, labour office figures showed on Wednesday, putting pressure on a new government battling to wrench Europe's largest economy from prolonged downturn. The office said the number of unemployed - already at a decade-long high in April - increased by 34,000 in seasonally adjusted terms to 2.96 million. Analysts polled by Reuters had expected a rise of 10,000. The number of unemployed people in Germany is approaching the 3 million mark for the first time over the last 10 years. Economic malaise has put pressure on the job market even against a backdrop of long-term labour shortages, adding to pressure on conservative Chancellor Friedrich Merz who has vowed to pull the economy out of two years of decline. The seasonally adjusted employment rate remained unchanged in May from the previous month at 6.3%, in line with a forecast by analysts in a Reuters poll. Excluding the pandemic, this is the highest level since December 2015. "The labour market is not getting the tailwind it needs for a trend reversal. Therefore, we expect unemployment figures to continue to rise in the summer," said labour office head Andrea Nahles. There were 634,000 job openings in May, or 67,000 fewer than a year ago, showing a slowdown in labour demand, the labour office said. The tariffs announced by U.S. President Donald Trump will deal a major blow - possibly putting the German economy on track for a third straight year of recession for the first time in post-war German history.
Local Germany
28-03-2025
- Business
- Local Germany
No 'spring revival' for Germany as unemployment rises
The latest weak data highlights the huge challenge for Germany's next government, which is expected to be led by conservative election winner Friedrich Merz, when it comes to reviving the economy. The rate rose to 6.3 percent on a seasonally adjusted basis, according to the federal employment agency, up 0.1 percent from the previous month. Analysts had expected no change. The number of jobless rose by 26,000 from February, according to seasonally adjusted data. The total figure stood at 2,967,000. March is traditionally a time when employment picks up in Germany -- known as "the spring revival" -- but employment agency chief Andrea Nahles said "the economic downturn" was putting a brake on hiring. ING bank economist Carsten Brzeski said it was "the weakest March number since the financial crisis" of 2007-2009. "The gradual weakening of the labour market looks set to continue," he said. READ ALSO: How will Trump's car tariffs impact Germany? "Recruitment plans in both industry and services continue to come down, and the ongoing announcements of potential cost-cutting measures in the automotive and other industries will push up unemployment." The German economy, the eurozone's traditional growth engine, has shrunk for the past two years as it battles a manufacturing slowdown, weak demand for its key exports and other deep-rooted woes. Advertisement Merz, whose conservative CDU/CSU alliance is in talks to form a coalition with the centre-left SPD, has succeeded in pushing plans for a major boost to defence and infrastructure spending through parliament. While the current "phase of weakness" was holding back the economy and hiring, the employment agency said, the planned spending splurge "offers the opportunity for an economic revival".
Reuters
31-01-2025
- Business
- Reuters
German unemployment rises less than expected in January, labour office says
BERLIN, Jan 31 (Reuters) - The number of people out of work in Germany rose less than expected in January, federal labour office figures showed on Friday. The office said the number of unemployed increased by 11,000 in seasonally adjusted terms to 2.88 million. Analysts polled by Reuters had expected that figure to rise by 14,000. The seasonally adjusted job rate rose slightly to 6.2%. "Unemployment and underemployment increased significantly at the start of the year, as is usual for this month," said labour office head Andrea Nahles. Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here.
