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The Labour Market in June 2018

Continued Favourable Development
29 Jun 2018 | Press Release No. 19

"The labour market continues to develop favourably: unemployment and underemployment have fallen again, employment subject to social security contributions is growing and the demand for labour remains lively. However, there has been a slight slowdown in the dynamics of the labour market recently," said Detlef Scheele, Chairman of the Administrative Board of the Federal Employment Agency (BA), today at the monthly press conference in Nuremberg.

Unemployment in June:
- 40,000 to 2,276,000

The number of unemployed compared to the previous year:
- 197.000

Unemployment rate compared to the previous month:
- 0.1 percentage point down to  5 percent

Unemployment, Under-employment and Inactivity  

With the end of the spring recovery, unemployment fell by 40,000 from May to June, to 2,276,000. Adjusted for the seasonal influences, a decrease of 15,000 is calculated for Juni, compared to the previous month. Compared to the previous year, 197,000 fewer people were registered as unemployed.

Under-employment, which also includes people in various programs under labour market relieving measures and those with short-term inability to work, fell by 16,000 in seasonally adjusted terms, compared with the previous month. Overall, in June 2018, the numbered of underemployed was 3,240,000 persons. That was 241,000 less than a year ago.

The unemployment, determined by the ILO information gathering concept of the Federal Statistical Office, amounted to 1.47 million in May, and the unemployment rate was 3.4 percent.

Gainful Employment and Employment Subject to Social Security Insurance

Employment and employment subject to social security insurance continued to increase. According to the Federal Statistical Office, the number of employed persons (according to the domestic concept) rose by a seasonally adjusted 37,000 in May, compared with the previous month. With 44.80million persons, it was 593,000 higher than in the previous year. The increase is due solely to more jobs subject to social security insurance. This number increased by 770,000 compared to last year. Overall, in April, according to extrapolated data, 32.78 million people were employed in positions subject to social security insurance. Based on this projection, employment subject to social insurance contributions increased from March to Aprilby a seasonally adjusted 60,000 . This means that it has not risen as strongly as during the unusually strong winter months.

Labour Demand

Demand for new employees continues to be very high. In June, there were 805,000 Jobs reported to the BA, 74,000 more than a year ago. On a seasonally adjusted basis, demand rose by 4,000 compared to the previous month. The BA (BA-X) job index - an indicator for the demand for labour in Germany - rose slightly, by one point to 254 points in June 2018. The previous year's value isexceeded by 18 points.

Cash Benefit Payments

Overall, 660,000 persons were receiving unemployment benefit payments in June 2018, which is 32,000 less than in the previous year. The number of persons capable to work and eligible for unemployment benefit within the framework of the Basic Insurance for Employment Seekers (SGB II) was 4,206,000 in the month of June. When compared with June 2017, this indicates a decrease by 202,000 persons. 7.7percent of the working-age population in Germany was, therefore, in need of help.

Apprentice Training Market

For those seeking apprentice training, the chances of finding a training place have improved further in mathematical terms. From October 2017 to June 2018, 478,000 applicants registered for an apprenticeship at an unemployment office or a job centre, 11,000 less than in the previous year. Of those seeking training, 182,000 were still without a placement in June. At the same time, 512,000 training positions were registered, since October. That was18,000 more than a year ago. In June, 235,000 apprenticeship positions were still open. Apprenticeship was most frequently offered to aspiring retail salesmen / saleswomen (32,000), salesmen / saleswomen in office management (22,000) and retail sellers (21,000) positions. As in previous years, in 2017 / 2018 there are regional, occupational and qualifying disparities, also, which make the balancing of supply and demand considerably more difficult.