Unemployment falls sharply – economy

Thanks to the economic recovery, the situation on the German labor market improved further in October. The number of unemployed fell to 2.377 million, as announced by the Federal Employment Agency (BA). This was 88,000 less than in September and 383,000 less than a year ago. The unemployment rate fell 0.2 points to 5.2%. Unemployment and underemployment have fallen sharply, while employment and the demand for new staff in enterprises have increased. The number of part-time workers also continues to decline. “The consequences of the corona crisis on the labor market are still visible, but they are diminishing,” said BA boss Detlef Scheele.

Excluding seasonal fluctuations, the number of seasonally adjusted unemployed fell by 39,000 from the previous month. Experts polled by Reuters had expected a drop of 20,000. In addition, the number of short-time workers fell to 760,000 in August. For comparison: The record figure following the corona pandemic was just under six million in April 2020.

“The labor market has so far been resistant to declining production in industry and construction,” said Fritzi K√∂hler-Geib, chief economist at the state development bank KfW. If supply bottlenecks for important intermediate products ease by the end of the year, “unemployment could continue to decline over the next winter, at least seasonally adjusted.”

The 2020/21 training market was heavily influenced by the Corona crisis, and despite the improvement, results were still far behind pre-pandemic results, BA Scheele boss said. “We are still facing major challenges.” From October 2020 to September 2021, 434,000 candidates would have registered with employment agencies, or 39,400 fewer than a year ago. The number of training places in companies fell from 18,000 to 497,000. Above all, the hotel and hairdressing companies hard hit by the virus crisis offered fewer apprenticeship places. At the end of September, there were still 63,200 vacant apprenticeship places, 3,200 more than a year earlier. The problems encountered in filling vacancies were mainly in hotels and restaurants, food production and sales occupations, health technology and construction.

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