Press Info 028 of 28.06.2012

"In June, the German labour market shows signs of a weaker development. The number of unemployed people declined less than usual in June. The demand for skilled employees also decreased. Particularly employment and employment covered by social insurance have still clearly increased," said Frank-J. Weise, Chairman of the Executive Board of the Federal Employment Agency (Bundesagentur für Arbeit – BA), in Nuremberg today at the monthly press conference.

• Unemployment figure in June:
  -46,000 to 2,809,000
• Unemployment figure compared to the previous year:
  -84.000
• Unemployment rate in June:
  -0.1 percentage points to 6.6 percent

Unemployment, under-employment, and joblessness

Unemployment decreased by 46,000 to 2,809,000 from May to June. In seasonally adjusted terms, unemployment increased by 7,000 compared to the previous month. Compared to the previous year, the number of unemployed people decreased by 84,000. However, the gap to the previous year's figures decreases from month to month. In three federal states as well as in the unemployment insurance, unemployment is already higher than last year.

In June, 3,814,000 people were under-employed; 246,000 less than last year. Under-employment (without short-time work) also includes persons who participate, for example, in measures of labour market policy providing relief or who are not considered as unemployed due to other reasons. It thus provides a more comprehensive picture of the deficit in regular employment than unemployment. The relief through labour market policy instruments declined compared to the previous year. In particular, assistance to self-employed people and employment creation measures were subject to this development.

Unemployment determined with the ILO concept of employment by the Federal Statistical Office was 2.32 million and the unemployment rate 5.5 percent in Germany in May.

Development in unemployment insurance

The number of persons within unemployment insurance (SGB III) decreased by 14,000 to 817,000 as compared to May. Compared to June 2011, there is an increase of 13,000. 768,000 persons received unemployment benefit in June. This is 10,000 less than in the previous month but 26,000 more than one year ago.

Development of basic benefits

The number of unemployment benefit II recipients within basic benefits (SGB II) was 4,473,000 in June. Compared to May, the number of unemployment benefit II recipients decreased by 19,000; compared to June 2011, the number declined by 176,000. 8.3 percent of the German population of working age are in need of assistance. The number of unemployed persons receiving basic benefits decreased by 33,000 to 1,992,000 compared to May and by 97,000 compared to the level of the previous year. One reason why a great part of unemployment benefit II recipients is not registered as unemployed is the fact that these people are employed, have young children to look after, care for relatives, or are still students.

Employment and employment covered by social insurance

Employment and employment covered by social insurance increased further and are significantly above the level of the previous year. According to information of the Federal Statistical Office, the number of employed persons increased by 561,000 to 41.58 million in May as compared to the previous year. According to BA projections, employment covered by social insurance was 28.88 million in April and thus 666,000 more as compared to the previous year. Employment covered by social insurance has been increasing in all federal states and in most branches of industry – most of all in the manufacturing industry and the business services industry.

Demand for labour

The demand for labour is at a high level, but declining. In June, the stock of reported vacancies was 499,000, being 20,000 more than in the previous year. Currently, the demand for experts from the metal, mechatronics, electronics, mechanical/automotive engineering, logistics and health industries is particularly high. The BA's job index, the BA-X, declined by six points to 165 points from May to June. As compared to the previous year, it shows a minus of four points.

Training market

From October 2011 to June 2012, a total of 464,000 vocational training vacancies were reported to the training placement departments; this is 20,000 more than in the same period last year. At the same time, 494,000 applicants contacted the training placement units of the employment agencies and job centres in their search for a vocational training position. This is 18,000 more than a year before. The number of signed vocational training contracts is also higher than last year, considering the latest data of the chambers. However, it is too early to rate the further development on the vocational training market in a differentiated way.

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