Labor market positive overall, but unemployment could rise
Nuremberg The mood at the German labour market has deteriorated slightly. The Institute for Labor Market and Occupational Research (IAB) continues to see signs of “a positive development of the German labor market in the coming months”, but also for an increase in unemployment, as it announced on Friday.
The Nuremberg Institute’s labor market barometer fell by 0.8 points to 101.8 points in May. Overall, it is still above the neutral mark of 100, but this does not apply to the unemployment sub-indicator.
Its value fell by 1.5 to 98. That is clearly below the neutral mark and suggests an increase in unemployment, according to the IAB.
The employment component, on the other hand, was much more positive. It fell 0.1 point to 105.6. This points to further significant increases in employment, it said. The labor market barometer ranges from 90 (very poor development) to 110 (very good development).
“The peak of the energy crisis is over, but the consequences are weighing on economic development,” said IAB expert Enzo Weber. According to the institute, the job opportunities of the unemployed “have suffered during the long-lasting economic setbacks.”
For example, long-term unemployment is almost 180,000 people above the pre-crisis level “and the proportion of unemployed without vocational training has increased significantly”. In the course of the year, more and more people from Ukraine would go looking for work, some of whom are currently still taking part in courses.