“The labour market remains lacklustre. In June, there was a clear increase in unemployment and underemployment on a seasonally-adjusted basis. Businesses are remaining cautious about hiring new staff,” explained Andrea Nahles, Chair of the Federal Employment Agency (BA), at the monthly press conference that took place today in Nuremberg.
Number of unemployed persons in June:
+4,000 to 2,727,000
Number of unemployed persons compared with the same time last year:
+172,000
Unemployment rate compared with the previous month:
unchanged at 5.8 percent
Unemployment, underemployment and economic inactivity
In June 2024, total unemployment increased by 4,000 to 2,727,000. As unemployment usually falls in June, however, on a seasonally-adjusted basis there was a clear increase in the number of unemployed persons compared with last month, in total of 19,000 people. Compared with June last year, there are 172,000 more unemployed persons. The unemployment rate is 5.8 percent, the same as May’s figure. Compared with the same month last year, the rate had increased by 0.3 percentage points. The unemployment rate measured by the Federal Statistical Office, based on the ILO concept of employment, stood at 3.6% in May.
On a seasonally-adjusted basis, underemployment, which along with unemployment also includes short-term incapacity to work, increased by 16,000 compared with the previous month. As of June 2024, it amounted to 3,546,000 people. This is 142,000 more than a year ago.
Short-time work
Before the start of short-time work, companies are required to submit a notification regarding the expected loss of work. According to current data, short-time work was reported for 42,000 people from 1st up to and including 24th June, which is about the same as during the equivalent period in the previous month.
Up-to-date data on the actual uptake is available up to April 2024. According to the preliminary extrapolated data of the Federal Employment Agency, the cyclical short-time allowance was paid for 242,000 employees in this month, after 223,000 in March and 201,000 in February.
Economic activity and employment
According to the Federal Statistical Office, the seasonally-adjusted number of employed persons (according to the domestic concept) increased by 20,000 in May 2024 compared with the previous month. At 46.04 million persons, it was 116,000 higher than it was at the same time last year. From March until April 2024, according to the projections of the BA, on a seasonally-adjusted basis employment subject to social security contributions increased by 44,000. In comparison with last year, employment subject to social security contributions in April increased by 183,000 to 34.87 million, with the increase being solely accounted for by foreign citizens. In April 2024, 7.57 million people were in marginal “mini-job” employment, 98,000 more than in the same month last year. Of this total, for 4.18 million people, this low-paid employment was their only job, while for 3.39 million it was just a side job.
The demand for labour
In June, 701,000 vacancies were registered with the BA, 69,000 fewer than a year ago. The BA Jobs Index (BA-X) – an indicator of the demand for staff in Germany, which, in addition to the number of registered jobs, also takes new jobs into account – fell by 2 points to 109 points in June 2024. Compared with the same month last year, the BA-X had recorded a decline of 10 points.
Cash benefits for unemployment and the need for support
870,000 people were in receipt of Unemployment Benefit in June 2024, 103,000 more than a year ago. The total number of people able to work and entitled to Citizen’s Benefit in June was 4,020,000. Compared with June 2023, this was an increase of 92,000 people. Therefore, 7.3 percent of people of working age living in Germany were in need of support.
The market for vocational training and apprenticeships
Between October 2023 and June 2024, 383,000 people seeking an apprenticeship registered with the federal employment agencies and Jobcenters. That was 9,000 more people than in the same period last year. Of this total, 154,000 young people were yet to have secured an apprenticeship position or an alternative in June. At the same time, 480,000 vacant apprenticeship positions were registered, 21,000 fewer than a year ago. Of these, 235,000 were still available. In June, many selection and appointment processes are yet to be completed, however. Therefore, these figures only allow a preliminary assessment of developments in the current reporting year.