“The labour market continues to feel the effects of the wider economic stagnation. Both unemployment and underemployment continued to increase during the summer holiday season,” explained Andrea Nahles, Chair of the Executive Board of the Federal Employment Agency (BA), at today’s monthly press conference in Nuremberg.
Number of unemployed persons in August:
+63,000 to 2,872,000
Number of unemployed persons compared with the same time last year:
+176,000
Unemployment rate compared with last month:
+0.1 percentage points to 6.1 percent
Unemployment, underemployment and economic inactivity
With the continuation of the summer holiday season, unemployment in August 2024 increased by 63,000 to 2,872,000. The seasonally-adjusted number of unemployed persons increased by 2,000 compared with the previous month. Compared with August last year, there were 176,000 more unemployed persons. The unemployment rate rose by approximately 0.1 percentage points to 6.1 percent. Compared with the same month last year, the rate increased by 0.3 percentage points. In July, the rate of unemployed persons determined by the Federal Statistical Office according to the ILO labour force concept amounted to 3.7 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 8,000 people compared with the previous month. In August 2024, total underemployment was 3,617,000, which is 136,000 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 the latest data, from 1st up until and including 26th August, short-time work relating to market conditions was reported for 40,000 people.
The latest data on the actual take-up is available up until June 2024. According to the preliminary extrapolated data from the Federal Employment Agency, the allowance for short-time work relating to market conditions was paid to 232,000 employees in this month, after 215,000 in May and 223,000 in April.
Economic activity and employment
According to the Federal Statistical Office, in July 2024, the seasonally-adjusted number of economically active persons (according to the inland concept) increased by 4,000 compared with the previous month. It amounted to 46.19 million people, which is 155,000 more than at the same time last year. 9,000 from May to June 2024. In comparison with the previous year, employment subject to social security contributions in June increased by 143,000 to 34.85 million, with the increase solely accounted for by foreign citizens. In June 2024, 7.67 million people were in low-paid “mini job” employment, 69,000 more than in the same month last year. Of this total, for 4.25 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 August, 699,000 available job vacancies were registered with the BA, 72,000 fewer than in the same period last year. In August 2024, the BA Jobs Index (BA X) – an indicator for the demand for personnel in Germany, which also takes into account the number of new job vacancies as well as those already registered – fell by 1 point to 106 points. Compared with the same month last year, the BA-X recorded a fall of 11 points.
Cash benefits for unemployment and persons requiring support
925,000 people received Unemployment Benefit in August 2024, 109,000 more than one year ago. The total number of people able to work and entitled to Citizen’s Benefit in August was 4,017,000. Compared with August 2023, this was an increase of approximately 72,000 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 until August 2024, 418,000 applicants registered for an apprenticeship position at the agencies for employment and Jobcenters. That was 10,000 more people than in the same period last year. Of this total, 82,000 young people were yet to have secured an apprenticeship position or an alternative in August. At the same time, 502,000 vacant apprenticeship positions were registered, 25,000 fewer than a year ago. Of these, 158,000 were still available. The market for vocational training and apprenticeships remains dynamic until the end of the reporting year on 30/09/2024. Accordingly, the number of unfilled apprenticeship positions and applicants yet to have found an apprenticeship or alternative will continue to fall.