The number of unemployed continues to fall

Dhe German labor market remains robust despite the war in Ukraine, high inflation and the sharp rise in energy costs. As the Federal agency for work announced on Wednesday that the number of unemployed fell by 43,000 to 2.442 million in October. The unemployment rate fell by 0.1 percentage points to 5.3 percent.

Britta Beeger

Editor in business and responsible for “The Lounge”.

However, the difficult economic situation is also leaving its mark on the labor market. The decline in unemployment can be attributed to the autumn revival that is usual at this time of year: Many young people start an apprenticeship or study after the summer break, and at the same time trades, construction and service providers have more to do again. If you factor out these typical seasonal fluctuations, there is – as in the previous month – a slight increase in unemployment: by 8,000.

Overall, the job market remains robust, said Andrea Nahles, Chairwoman of the Federal Employment Agency. “However, the consequences of the economic uncertainties are visible.” Nahles pointed out that more companies were again preparing for possible short-time work and reduced their demand for new staff.

More workers than ever before

Leading indicators suggest that the situation on the German labor market could deteriorate further in the coming months. The labor market barometer of the Nuremberg Institute for Labor Market and Vocational Research, which is part of the Federal Employment Agency, fell in October for the sixth time in a row. The barometer is based on a monthly survey of all local employment agencies. They assume that employment will continue to rise in the coming months, but not as strongly as before. At the same time, seasonally adjusted unemployment is likely to continue to rise.

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