30 Oct 2019 | Press Release No. 32
“The current economic downturn is clearly leaving its mark on the labour market. But all in all, it still seems robust”, said the Chairman of the Federal Employment Agency (BA), Detlef Scheele, at today’s monthly press conference in Nuremberg.
Unemployment rate in October: - 30,000 – now 2,204,000
Unemployment compared to last year: +0
Unemployment compared to last month: -0.1% – now 4.8%
Unemployment and underemployment
Over the course of the autumn upturn, unemployment has fallen by 30,000 to 2,204,000 from September to October. If these figures are adjusted to account for seasonal factors, an increase of 6,000 can be calculated for October compared to last month. This rise has been caused solely by developments in the area of unemployment insurance due to the economic downturn. The number of unemployed persons has not changed compared to last year. The unemployment rate of 4.8% is 0.1 percentage points below the figures for the previous month and the previous year. The short-term unemployment rate stood at 3.0% in September, as calculated by the Federal Statistical Office according to the ILO short-term employment concept.
If seasonal factors are taken into account, there has been a decrease of 4,000 compared to last month with regard to the underemployment rate, where changes in labour market policy and short-term incapacity to work are also considered. A total of 3,129,000 persons were underemployed in October 2019 – 13,000 fewer than a year ago.
Short-term employment and employment subject to national insurance payments
There has been a further increase in short-term employment and employment subject to national insurance payments, but not as strong as last year. According to the Federal Statistical Office, the number of persons in employment (in line with the domestic concept) in September rose by 10,000 compared to the previous month if the figures are adjusted to account for seasonal factors. There are now 45.50 million persons in employment – 338,000 more than last year. This increase is largely due to the rise in employment subject to national insurance payments – 489,000 more than last year. According to the extrapolated figures of the BA, a total of 33.62 million persons were in employment subject to national insurance payments in August. If these figures are adjusted to account for seasonal factors, this constitutes a rise of 27,000 persons from July to August.
There is a high demand for new employees, but this is continuing to decrease. 764,000 jobs were registered with the BA in October – 60,000 fewer than last year. If these figures are adjusted to account for seasonal factors, the amount of jobs registered with the BA have dropped by 12,000. The BA job index (BA‑X) – an indicator of the labour demand in Germany – clearly fell by 5 points to 232 points in October 2019. This puts it 22 points below the level recorded last year.
717,000 persons received unemployment benefits in October 2019 – 57,000 more than a year ago. In October, there were 3,795,000 persons who were fit to work and eligible to receive basic security benefits for job seekers (German Security Code II). This represents a decrease of 236,000 persons compared to October 2018; 7.0% of the people of working age living in Germany were in need of help.