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Economic weakness leaves its mark on the labor market

2024-02-29T13:44:37.726Z

Highlights: The number of unemployed people in Germany rose by around 8,000 to 2.814 million people in February compared to the previous month. Compared to February of the previous year, the number had increased by 194,000. The unemployment rate in February was 6.1 percent, unchanged from January. The risk of being fired remains low, but the chances of finding a new job if you become unemployed have become significantly smaller. The shortage of skilled workers and workers is a brake on prosperity, says the managing director of the Confederation of German Employers’ Associations.



As of: February 29, 2024, 2:35 p.m

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Compared to the same month last year, the number of unemployed people rose by almost 200,000 in February.

© Sebastian Kahnert/dpa

Rising unemployment, the threat of short-time work: times on the German labor market are getting tougher.

The economy, on the other hand, still lacks skilled workers.

Nuremberg - The German labor market is being hit more and more severely by the ongoing economic weakness.

The number of unemployed is increasing, short-time work is threatening to increase, and the number of positions to be filled is decreasing.

“The weak economic environment is dampening the overall robust labor market,” said the CEO of the Federal Agency (BA), Andrea Nahles, at the presentation of the February statistics in Nuremberg.

“Unemployment and underemployment increase in February and demand for labor weakens,” she said.

“The number of unemployed often drops in February.

“That’s not the case this time,” said Nahles to classify it.

The number of unemployed people in Germany rose by around 8,000 to 2.814 million people in February compared to the previous month.

Compared to February of the previous year, the number had increased by 194,000, the Federal Employment Agency announced on Thursday in Nuremberg.

The unemployment rate in February was 6.1 percent, unchanged from January.

Compared to February 2023, the rate has increased by 0.4 points.

Unemployed people find it more difficult to find a job

Federal Labor Minister Hubertus Heil (SPD) still sees the situation optimistically.

“Companies are retaining their employees in view of the shortage of skilled workers.

The risk of being fired remains low,” he said.

However, the chances of finding a new job if you become unemployed have become significantly smaller.

“It’s very concreted over at the moment,” said Nahles.

On the other hand, there are still complaints from business about a lack of skilled personnel.

“The shortage of skilled workers and workers is a brake on prosperity,” said the managing director of the Confederation of German Employers’ Associations (BDA), Steffen Kampeter.

Politicians must exhaust all possibilities - from more flexible working hours to immigration into employment.

This also included improved daycare care, more career orientation and the development of a smart welcoming culture.

Nahles: Citizens' money does not stop people from working

Nahles rejected the theory that citizens' money was perceived as such an attractive social benefit that people used it instead of working.

“I can definitely rule out the possibility of a jump from work to citizen’s benefit,” she said.

“We have fewer people leaving work for citizens’ benefit than at any time since 2015.”

An above-average number of refugees also went into work using citizens' money.

Although she believes it is still premature to take stock, Nahles said: “The job turbo has started.”

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According to the Federal Agency, the number of reported vacancies fell by 72,000 to 706,000 in February compared to the previous year.

For its February statistics, the Federal Agency used data that was available up to the 14th of the month.

The risk of short-time work increased again in February.

From February 1st to 25th, companies announced short-time work for 58,000 people - which does not automatically mean that this will then be used.

However, the number of advertisements represents a significant increase compared to January.

More applicants on the training market

It was said that the situation on the training market had improved somewhat.

So far, 4,000 more applicants have been registered for the 2023/24 reporting year than in the previous year.

The number of company training positions fell by 11,000.

However, there are still more training positions than applicants.

The market is currently still very much in flux.

Nahles called on young people without prospects to look for an apprenticeship as soon as possible.

“If you don’t have anything yet or don’t know anything, you should get going as quickly as possible.” She would like to see schools start career guidance earlier.

Ideally, this should begin in the fifth grade.

The Federal Agency will provide support with digital parent evenings and a week of vocational training in March.

dpa

Source: merkur

All news articles on 2024-02-29

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