Unemployment in Germany reached 3.06 million people and continued to rise in August

The number of unemployed in Germany continued to rise and reached 3.061 million people in August. Within a month, the number of registered unemployed increased by 54 thousand, and the unemployment rate rose from 6.4% to 6.5%.

This was reported by the Federal Employment Agency of Germany (Bundesagentur für Arbeit). Compared with August last year, there were 36 thousand more unemployed, and the unemployment rate rose by 0.1 percentage point.

“In August, the labor market shows weak dynamics outside the usual seasonal fluctuations. Thus, the subdued development of recent months continues,” — stated the chairwoman of the Federal Employment Agency, Andrea Nahles.

After seasonal adjustment, the increase was small

A significant part of the August increase is related to seasonal factors. In summer, training programs and vocational education end, some temporary employment contracts expire, and companies often postpone hiring until the end of the vacation period.

After excluding seasonal fluctuations, the number of unemployed rose only by 4 thousand people — to about 2.996 million. The seasonally adjusted unemployment rate remained at 6.4%.

Nevertheless, the data indicate continued weakness of the German labor market. The number of employed persons in July, seasonally adjusted, decreased by 14 thousand people. In total, Germany had about 45.66 million employed — 226 thousand less than a year earlier.

The number of workers subject to compulsory social insurance contributions was 34.81 million in June. Over the year their number decreased by 73 thousand.

Demand for workers remains weak

The Federal Employment Agency notes that companies’ demand for new employees remains subdued. In August, employers reported 656 thousand vacancies to the agency.

The BA-X labor demand index in August stayed at 103 points. The agency considers that a significant revival in the labor market has not yet occurred, despite some signs of economic improvement.

Simultaneously, the number of unemployment benefit recipients is growing. In August, according to preliminary estimates, 1.133 million people received it — 109 thousand more than a year earlier.

The broader underemployment indicator, which includes participants in employment promotion programs and temporarily incapable persons in addition to registered unemployed, totaled 3.674 million people. This is 33 thousand more than a year ago, although after seasonal adjustment the indicator decreased by 3 thousand over the month.

Thus, the mark of 3 million registered unemployed remains in Germany for the second consecutive month. At the same time, the Federal Employment Agency characterizes the current state of the labor market as a period of weak dynamics, not a sharp deterioration.

Based on materials from: Federal Employment Agency of Germany