In the summer, an increase in the number of unemployed is not uncommon, but in July, the rise was more significant than usual, as reported by the Federal Employment Agency (BA). The primary reason cited is the weak economic performance.
The number of unemployed people in Germany increased significantly in July, more than typically expected at the beginning of the summer break. The BA recorded 2.809 million unemployed, as announced by the agency in Nuremberg. This figure represents an increase of 82,000 compared to June and 192,000 more than a year ago.
In addition to the start of the summer break, the weak German economic growth is contributing to this increase. “The weak economic development is weighing on the labor market,” said BA board member Daniel Terzenbach. The unemployment rate rose by 0.2 percentage points to 6.0 percent.
Fewer job vacancies reported
At the same time, the number of job vacancies also declined. In July, the BA had 703,000 job vacancies registered, 69,000 fewer than a year ago. The agency’s job vacancy index, an indicator of demand for personnel, dropped by two points to 107 points. Compared to the same month last year, this was a decline of twelve points.
In July, 903,000 people received unemployment benefits according to the BA, 105,000 more than a year earlier. The number of employable citizens eligible for the citizens’ allowance stood at 4.021 million in July, 75,000 more than a year earlier.
More apprenticeship positions than applicants
The BA sees movement in the apprenticeship market. In July 2024, 121,000 registered applicants had yet to find an apprenticeship or alternative training opportunity. In contrast, there were 204,000 registered vacant apprenticeship positions at companies. It is expected that these numbers will decrease over the summer months.
According to current data from the BA, 58,000 people were registered for economic short-time work from July 1 to 25, a good third more than in the previous month. Whether the short-time work will actually be utilized remains unclear, as businesses only report the anticipated loss of work when registering.
