Arbeitsmarkt: Drei Millionen Arbeitslose – Besserung in Sicht?

According to the Federal Employment Agency, the number of unemployed people in Germany remained above three million in August. The reason for this, according to the agency's managing director Andrea Nahles, is the summer break. "However, we assume that unemployment will fall again next month," she said. Nonetheless, a trend reversal in the labor market does not appear to be imminent.

Across Germany, 3.061 million people were without a job in August, 54,000 more than the previous month. This figure corresponds to the usual seasonal pattern for August, Nahles explained. The majority of the increase resulted from young people who, after finishing school or training, are still without a permanent job. Seasonally adjusted, the rise in unemployment stood at 4,000 people.

The unemployment rate increased by 0.1 percentage points to 6.5 percent compared to the previous month. The agency used data up to August 13th for its current statistics. Growth impulses are lacking, so the stagnant development of recent months continues. With regard to cyclical short-time work, the level remains higher compared to past years, open positions are at a low level, and social insurance coverage lacks growth impulses, Nahles pointed out.

A revival in September could see the number of unemployed drop below three million, she said, but that would be due solely to seasonal reasons. "The holiday season ends in many companies, and new appointments will be made more frequently." The economic recovery may gain pace for professionals, but it will take several months before a cyclical recovery hits the labor market, Nahles added.

The expectations remain heavily guarded. "We even thought the spring this year would be better back in the last autumn," she said. For the Federal Employment Agency's budget, falling unemployment figures would be good news, as they are mainly burdened by higher expenditures on unemployment and short-time work benefits. Nahles expects a deficit of more than 10 billion euros by the end of the year, with 5 billion euros projected for 2027. In case of a cyclical upswing, the sum in the coming year might be lower, she said.