“The lacklustre economic performance is affecting the labour market. At the start of the summer holiday season, unemployment and underemployment increased more strongly than usual,” said Daniel Terzenbach, Regional Director of the Federal Employment Agency (BA), at today’s monthly press conference in Nuremberg.

Number of unemployed persons in July:
+82,000 to 2,809,000
Number of unemployed persons compared with the same time last year:
+192,000
Unemployment rate compared with the previous month:
+0.2 percentage points to 6.0 percent

Unemployment, underemployment and economic inactivity 

Due to the onset of the summer holiday season, unemployment in July 2024 increased by 82,000 to 2,809,000. And the increase was significantly higher than is usual for July. The seasonally-adjusted number of unemployed persons increased by 18,000 compared with the previous month. Compared to July last year, there were 192,000 more unemployed persons. The unemployment rate rose by 0.2 percentage points to 6.0 percent. Compared with the same month last year, the rate has increased by 0.3 percentage points. In June, the unemployment rate determined by the Federal Statistical Office according to the ILO concept of employment amounted to 3.4 percent.

On a seasonally-adjusted basis, underemployment, which along with unemployment also includes state-supported training and employment programmes and short-term incapacity to work, increased by 1,000 people compared with the previous month. In July 2024, underemployment amounted to 3,583,000, which is 139,000 people 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 the current data, cyclical short-time work was reported for 58,000 people from the 1st up to and including the 25th July, which is a good third more than at the same time in the previous month. 

Up-to-date data on actual uptake is available up to May 2024. According to preliminary extrapolated data from the BA, cyclical short-time allowance was paid for 211,000 employees in this month, after 226,000 in April and 213,000 in March.

Economic activity and employment

According to the Federal Statistical Office, the seasonally-adjusted number of employed persons (according to the domestic concept) increased by 7,000 in June 2024 compared with the previous month. At 46.23 million people, it was 166,000 higher than in the previous year. From April until May 2024, according to the projections of the BA, on a seasonally-adjusted basis, employment subject to social security contributions increased by 5,000. In comparison with last year, employment subject to social security contributions in May increased by 179,000 to 34.91 million, with the increase being solely accounted for by foreign citizens. 7.64 million people were in low-paid “mini-job” employment in May 2024, 86,000 more than in the same month last year. Of this total, for 4.22 million people, this low-paid employment was their only job, while for 3.42 million, it was just a side job.

The demand for labour

In July, 703,000 job 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 107 points in July 2024. Compared to the same month last year, the BA-X recorded a decline of 12 points.

Cash benefits for unemployment and persons requiring support

903,000 people were in receipt of Unemployment Benefit in July 2024, 105,000 more than a year ago. The total number of people able to work and entitled to Citizen’s Benefit in July was 4,021,000. Compared to July 2023, this was an increase of 75,000 people. 7.3 percent of people of working age living in Germany were therefore in need of support.

The market for vocational training and apprenticeships

From October 2023 to July 2024, 402,000 applicants registered with the employment agencies and Jobcenters for an apprenticeship position. That was 10,000 more people than in the same period last year. Of this total, 121,000 young people were yet to have secured an apprenticeship position or an alternative in July. At the same time, 492,000 vacant apprenticeship positions were registered, 22,000 fewer than a year ago. Of these, 204,000 were still available. In July, the market for apprenticeships is still busy. Accordingly, the number of unfilled apprenticeship positions and applicants yet to have found an apprenticeship or an alternative will decrease significantly over the summer months.