The labour market in June 2019

Economic slowdown is apparent

01 Jul 2019 | Press Release No. 19

"The weaker economic development leaves slight repercussions on the job market". Unemployment fell only slightly in June. The CEO of the Federal Employment Agency (BA), Detlef Scheele said today at the monthly press conference in Nuremberg: "The number of registered jobs is regressing to the next level and employment growth is losing momentum".

Number of unemployment in June:
-20,000 to 2,216,000

The number of unemployed persons com-pared to the previous year:

The unemployment rate compared to the previous month:
unchanged at 4.9 percent

Unemployment, underemployment and inactivity

Unemployment fell by 20,000 from May to June to 2,216,000. Adjusted for the seasonal influences, a decrease of 1,000 is calculated for June, in comparison to the previous month. Compared to the previous year, 60,000 fewer people were registered as unemployed. The unemployment rate, as in May is 4.9 percent. Compared to June of last year, it has reduced by 0.1 percentage points. The unemployment rate calculated by the Federal Statistical Office according to the ILO employment concept was 3.0 percent in May.

The impact of the weakening economy is most evident in underemployment, which also takes into account of changes in labor market policies and short-term incapacity for work. Seasonally adjusted, it rose by 6,000 compared to the previous month. On the whole, there were 3,172,000 unemployed persons in June 2019. That was 62,000 less than a year ago. 

Gainful employment and employment subject to social security insurance contributions

Employment and employment subject to social security insurance contributions have continued to rise. According to the Federal Statistical Office, the number of employed persons (according to the domestic concept) has increased by a seasonally adjusted 21,000 in May, when compared to the previous month. With 45.28 mil-lion persons, it was 462,000 higher than in the previous year. The increase is largely due to the growth in employment subject to social security insurance contributions. This number increased by 595,000 compared to last year. According to the projected data of the BA, a total of 33.38 million people were employed in April, who were liable to pay social insurance contributions. Seasonally adjusted, there is an increase by 38,000 from March to April. 

Labour demand

The demand for new employees is at a high level, but is noticeably weaker. 798,000 jobs were registered at the BA in June, which is 8,000 less than the previous year. Seasonally adjusted, the number of jobs registered at the BA has reduced by 4,000. 
The job index of the BA (BA-X) – an indicator of the demand for labour in Germany – remained unchanged at 248 points, in June 2019. Thus, it is 6 points below the previous year's value. 

Monetary benefits

704,000 persons received unemployment benefits in June 2019, 43,000 more than a year ago. The number of persons eligible to work in the basic scheme for job seekers (SGB II) was at 3,964,000. Compared to June 2018, this was a decline of 208,000 people. 7.3 percent of persons of working age living in Germany were thus in need of help. 

Apprentice training market 

From October 2018 to May 2019, 460,000 applicants registered for an apprenticeship at an unemployment office or a job centre; 18,000 less than in the previous year. From these, in June 210000 were still looking for a placement. At the same time, 529,000 apprenticeship training positions were registered: 17,000 more than the year before. Out of these, 241,000 apprenticeships were still vacant in June. Most frequently, training places have been reported for prospective retail merchants, for businessmen for office management as well as for salesmen and saleswomen. As in previous years, in 2018/19 there are regional, occupational and qualifying disparities, also, which make the balancing of supply and demand considerably more difficult.

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