The number of unemployed in Germany is increasing
There were surprisingly more unemployed people in Germany in May. Experts had expected a decline. In addition to the weaker economic development, the reason for the increase is also a special effect.
Dhe economic slowdown is reflected in the German job market. In May, the number of unemployed – but also because of a special effect – surprisingly rose by 7,000 to 2.236 million compared to the previous month, as the Federal Employment Agency (BA) announced on Wednesday in Nuremberg.
“The labor market is showing the first effects of the recently somewhat weaker economic development,” said BA boss Detlef Scheele. “The demand from companies for new employees is noticeably weakening at a high level.” However, the unemployment rate remained unchanged at 4.9 percent.
Excluding seasonal fluctuations, the number of unemployed rose by 60,000 from April to May, according to the BA. Banking economists, on the other hand, had expected a decrease of 8,000. According to the authority, the greater part of the increase can be traced back to “testing activities on the placement status of unemployed benefit II beneficiaries”.
This has stopped the long-term job boom in Germany for the time being. For the second time in a row, the demand for labor has weakened, reported the Federal Agency. She is referring to her job index BA-X for May. However, the number of vacancies is still at a high level, emphasized the Nuremberg federal authority.
The corresponding value, which BA experts calculate every month on the basis of the reported open jobs, fell in May from 251 to 248 points. Compared to the previous year, the value decreased by 6 points. At the height of the job boom in September 2018, the BA-X was still at 256 points. Labor market researchers see the weaker economy as the reason for the slowdown.
The health and social services are comparatively immune to the economic downturn. There are still many vacancies in the construction industry. On the other hand, job registrations in the manufacturing industry and in the transport and logistics sector are on the decline. Temporary employment agencies no longer have as many vacancies as they did a few months ago. Nonetheless, industry, along with health and social services, remains an important pillar of labor demand in terms of job vacancies. The same applies to trade.
Research institutes and the federal government had lowered their expectations for economic growth this year in the past few months. The federal government expects an increase of only 0.5 percent, after 1.4 percent in 2018.