The head of the employment agency, Andrea Nahles, put the word “trend reversal” on Wednesday. The German labor market still proved to be robust in October. However, the seasonal upswing in autumn was subdued, refugees from Ukraine are no longer the main cause of new unemployment and short-time work is at least not declining any further. The impending economic crisis also sends its harbingers to the Federal Employment Agency in Nuremberg.
The number of unemployed in Germany fell by 43,000 to 2,442,000 in October compared to the previous month, which is typical for the season. However, it is 65,000 higher than at the same time last year, the Federal Agency announced on Wednesday. The unemployment rate fell by 0.1 points to 5.3 percent. For its October statistics, the Federal Agency used data that was available up to October 13th.
Federal Minister of Labor Hubertus Heil (SPD) was satisfied with the development in view of the challenges: “We will continue to stand by the employees and do everything we can to get the job market through this crisis well,” he said.
Specialists wanted
“Overall, the labor market is still robust, and employment in particular continues to grow,” said Nahles, head of the authority. 34.57 million people are employed subject to social security contributions, more than half a million more than at the same time last year. The companies would do a lot to keep their skilled workers even in the crisis.
In October 2021, however, the autumn revival on the labor market had caused the number of unemployed to fall twice as much by 88,000 at the time. This year, a seasonally adjusted calculation even shows a slight increase of 8,000. “Our interpretation is that it is the consequences of the economic slowdown that are causing this,” Nahles said.
The Federal Agency continues to assume that the refugees from Ukraine are currently having an effect on the number of unemployed – but according to Nahles they are no longer the main reason for new unemployment. Rather, they increasingly appeared in the statistics for underemployment, where participants in integration courses, for example, are also taken into account.
Economic uncertainty has consequences
Short-time work has not decreased recently – as in the previous months. For Nahles, this is also a consequence of the economic uncertainties that have recently become clearer. “We are observing that companies want to resort more to short-time work due to the economy,” she said. According to calculations by the Federal Agency, short-time work benefits were paid to 106,000 people in August. Between October 1 and October 26, complaints were received for a further 82,000 workers – after 57,000 in September. However, it is not certain whether these will be realised. The manufacturing sector in particular is affected.
At the end of the application period at the end of September, there are signs of a widening gap between supply and demand on the training place market. “Never since reunification have the chances of finding an apprenticeship been so good. However, companies are finding it increasingly difficult to fill a position,” said Nahles.
She called on both applicants and companies to show willingness to compromise. Applicants should also consider alternatives to their dream job. Companies would have to deal with considering candidates whose qualifications might not quite match their expectations.
A total of 546,000 vocational training places had been reported to the Federal Agency by September 2022, 23,100 more than in the same period last year. This compares to 422,400 applicants, 11,100 fewer than last year. On September 30, 68,900 jobs were still unfilled and 22,700 young people were still unplaced.
