Germany has seen a slight increase in the number of unemployed people, with the number of people without work rising by 0.1% in December compared to November.
“In December, the winter break begins in the job market. As a result, unemployment and underemployment increased in December, as is normal for this month,” Andrea Nehles, president of the Federal Employment Agency (BA), said in Nuremberg. “
According to the office, the unemployment rate is now at 6.0% by December 2024, compared to 5.7% during the same time in 2023.
“Looking back, the economic recession that continues into 2024 has left deep scars on the labor market,” Nahles said.
The seasonally adjusted unemployment figure rose by 10,000 people in December from November, still below the 15,000 forecast by analysts polled by Reuters news agency.
Increase in the number of people working less hours
BA also said it had seen an increase in the number of people working fewer hours.
In Germany, private sector employees may have to accept reduced working hours, with the German government helping to replace lost wages with public funds. This state wage subsidy program is known as “Kurzerbeit”.
According to its data, the annual average number of short-time workers in 2024 was about 320,000, while it was 241,000 in 2023.
The agency said this equates to an average loss of work of about 28%.
However, reducing working hours protected jobs for about 90,000 workers and prevented unemployment, the agency reported.
The German economy has suffered a decline in industrial orders due to the COVID-19 pandemic and the impact of Russia’s war in Ukraine.
The country is struggling to revive its troubled economy, but inflation is falling.
kb/wd (dpa, Reuters)