Daily Management Review

Unemployment in Germany reaches four-year high in May


In May, the number of unemployed increased by 238 thousand to 2.875 million people in Germany, the Federal Employment Agency said. Unemployment jumped to 6.3% compared to 5.8% in the previous month. This is the highest level since December 2015.

Analysts on average predicted an increase in the number of unemployed by 200 thousand and an increase in unemployment to 6.2%, according to Trading Economics. Interviewed by Dow Jones Newswires experts expected an increase of 210 thousand and estimated unemployment at 6.2%.

According to updated data, in April the number of unemployed in Germany jumped by 372 thousand - a record monthly increase.

"The labor market remains under tremendous pressure due to the coronavirus pandemic," Detlef Scheele said. However, he noted that unemployment did not grow as much as in April.

The number of open vacancies in the country in May remained at the level of the previous month - 584 thousand. Compared to last year, the indicator fell by 208 thousand.

The number of part-time workers in Germany in May rose to a record 7.3 million against the backdrop of the coronavirus pandemic, the Munich Institute for Economic Research (Ifo) said.

"This number has never been so high," Ifo expert on the labor market Sebastian Link told to Deutsche Welle. According to him, the previous peak of forced underemployment occurred in May 2009, when the figure was slightly less than 1.5 million people.

"Unlike the financial crisis, when more than 80% of workers on an abbreviated schedule were employed in industry, during the coronavirus crisis, underemployment was recorded in almost all sectors of the economy," the institute said in a statement.

In areas related to business services, this practice spread to 2.4 million people, in the industrial sector - to 2.2 million, in trade - to 1.3 million.

source: dw.de