The Labour Market in August 2018

Continued Favourable Development

30 Aug 2018 | Press Release No. 22

"The labour market continues its favourable development. As expected, unemployment has increased slightly, in August. The increase was seasonal; seasonally adjusted unemployment and underemployment have decreased", said the CEO of the Federal Employment Agency (BA), Detlef Scheele, today at the monthly press conference in Nuremberg.

Unemployment rate in August:
+ 26,000 up to 2,351,000

The number of unemployed compared to the previous year:
- 194,000

Unemployment rate compared to the previous month:
-+ 0.1 percentage point down to 5.2 percent

Unemployment, Under-employment and Inactivity

In the course of the summer break, unemployment rose by 26,000 from July to August to 2,351,000. Adjusted for the seasonal influences, a decrease of 8,000 is calculated for August, compared to the previous month. Compared to the previous year, 194,000 fewer people were registered as unemployed.

Under-employment, which also includes people in various programmes under labour market relieving measures and those with short-term inability to work, fell by 18,000 in seasonally adjusted terms, compared with the previous month. Overall, in August 2018, the number of underemployed was3,236,000 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 1.44 million in July, 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 46,000 in July, compared with the previous month. With 44.95million persons, it was 574,000 higher than in the previous year. The increase is due solely to more jobs subject to social security insurance becoming available. This number increased by 704,000 compared to last year. Overall, in June, according to extrapolated data by the BA,32.87 million people were employed in positions subject to social security insurance. Employment subject to social security insurance contributions increased accordingly from May to June by a seasonally adjusted 55,000.

Labour Demand

The demand for new employees continues to be very high. In August, there were 828,000jobs registered with the BA, 62,000 more than a year ago. Seasonally adjusted, the number of jobs reported to the BA has not changed. The BA (BA-X) employment index - an indicator of the demand for labour in Germany - rose again, following an increase in the previous month, by 3 points in August 2018, to 252 points. The previous year's value is exceeded by 11 points.

Cash Benefit Payments

Overall, 699,000persons were receiving unemployment benefit payments in August 2018, which is32,000 less than in the previous year. The number of employable persons eligible for unemployment benefit within the framework of the Basic Insurance for Employment Seekers (SGB II) was4,139,000 in the month of August. When compared with August2017, this indicates a decrease by 229,000 persons. 7.6 percent 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 August 2018, 521,000 applicants registered for an apprenticeship at an unemployment office or a job centre, 11,000 less than in the previous year. At the same time, 548,000 training positions were registered, since October. That was 23,000 more than a year ago. Of those seeking training, 91,000 were still without a placement in August. In addition, 49,000 applicants who already have an alternative position, were still looking for a training placement. By contrast, in August there were still 149,000 unfilled training positions available. Experience tells us that many of the applicants not yet provided for will find apprenticeship training or an alternative during the next few weeks, and training positions will be filled. As in the previous years, in 2017 / 2018, too, there are regional, occupational and qualifying disparities, which make the balancing of labour supply and demand considerably more difficult.


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