The situation in the German labor market continued to improve in August despite the summer break and the corona pandemic. According to the employment agency, the number of unemployed has declined – according to 2.58 million people without a job. Contrary to the seasonal trend, the number of unemployed in Germany fell in August. Nationwide, 2.58 million people were unemployed, 12,000 fewer than in July and 377,000 fewer than in August 2020. This was announced by the Federal Employment Agency (BA). The unemployment rate remained unchanged at 5.6 percent.”The job market has continued to recover,” said the Federal Agency’s chairman, Detlef Scheele. Unemployment continued to fall sharply, although it was still the summer break. “Employment growth is picking up momentum.”
Usually, fewer hires in August
Unemployment usually rises in August as companies hire fewer people and apprenticeships end before the summer holidays. This summer, however, this will be overshadowed by catch-up effects: After the lockdown that lasted for months, there is an increasing need for workers in many industries. According to the Federal Agency, the number of unemployed fell for the first time since 2010 August.
Seasonally adjusted, the number of people without a job even fell by 53,000. The reference date for the current labor market statistics was August 12th. “The influence of the Corona crisis on the labor market is decreasing, even if it is still visible,” said Federal Labor Minister Hubertus Heil. According to estimates by the Federal Agency, the level of unemployment is still 261,000 people higher than it would have been without the pandemic. The corona effect will no longer be noticeable at the end of 2023 at the earliest, said Scheele.
Reduction in short-time work in August
The advertisements for short-time work also fell in August. From August 1st to 25th, companies announced short-time work for 68,000 people. Data on how many people actually received short-time allowance are available by June. According to the extrapolated data, short-time work benefits were paid for 1.59 million employees in the month – the sum fell below the two million marks for the first time since the beginning of the crisis. In April 2020, the short-time allowance paid had reached a high of almost six million euros. “So the trend is going in the right direction,” said Heil.
The situation on the training market
A brightening is now also visible on the training market, said BA boss Scheele. Compared to the previous year, there is a slightly positive trend, but this is still characterized by the corona crisis, said Scheele. Above all, the number of registered applicants from October 2020 to August 2021 fell again to 420,000 compared to the same period in the previous year. According to the Federal Agency, this is not due to a decline in interest in training among young people, but to the more difficult access: Due to the pandemic, internships in companies, training fairs, and visits by job advisors to schools were canceled.