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The labour market in September 2018

Powerfully developing autumn revival

28 Sep 2018 | Press Release No. 25

"Unemployment and under-employment have significantly decreased in September. Employment subject to social security insurance  continues to grow, and the demand for employees by businesses is showing an increase again. Thus the development of the labour market is persistently good," said Detlef Scheele, Chairman of the Administrative Board of the Federal Employment Agency (BA), today, at the monthly press conference in Nuremberg.

The number of unemployed in September:
- 94,000 to 2,256,000

The number of unemployed compared to the previous year:
- 192,000

The unemployment rate compared to the previous month:
-0.2 percentage points to 5.0 percent

Un-employment, Underemployment and Inactivity

As a result of the onset of autumn revival, the number of unemployed fell by 94,000 to 2,256,000 from August to September. Adjusted for the seasonal influences, a decrease of 23,000 is calculated for September, compared to the previous month. Compared to the previous year, 192,000 fewer people were registered as unemployed.

Under-employment, which also takes people in various programs under labour market relieving measures and those with short-term incapacity for work into consideration, fell by 17,000 in seasonally adjusted terms, compared with the previous month. Overall, in June 2018, the number of underemployed was 3,170,000 persons. That was 235,000 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 rate of the inactive 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 31,000 in August, compared with the previous month. With 45.01 million persons, it was 565,000 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 July, according to extrapolated data by the BA, 32.83 million people were employed in positions subject to social security insurance. Seasonally adjusted, from June to July this means an increase by 77,000.

Labour Demand

The demand for new employees continues to be very high. In September, there were 834,000 jobs reported to the BA, 61,000 more than during the previous year. Seasonally adjusted, the number of jobs reported to the BA has increased by 6,000. The BA (BA-X) employment index - an indicator of the demand for labour in Germany - rose by 5 points again in September 2018, to 257 points, after a temporary decline. The previous year's value isexceeded by 13 points.

Cash Benefit Payments

Overall, 660,000 persons were receiving unemployment benefit payments in September 2018, which is 26,000 less than in the previous year. The number of persons eligible for benefits in the basic insurance for job seekers (SGB II) stood at 4,083,000 in September. When compared with September 2017, this indicates a decrease by 240,000 persons. 7.5 percent of the working-age population in Germany was, therefore, in need of help.