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Unemployment shrinks despite slowdown

The number of German unemployed eased more than expected in August, but some analysts said the good news would likely be temporary as Europe's biggest economy slows down.

Published: 28 August 2008 14:37 CEST

Unemployment shrinks despite slowdown

Gesellen, traditional travelling German craftsmen, on the road. Photo: DPA

The unemployment rate dipped to 7.6 percent from 7.7 percent in July, adjusted figures from the national employment agency showed on Thursday.

The number of jobless people declined by 40,000 and surprised analysts polled by Dow Jones Newswires who had expected a drop of 10,000.

In July the number of jobless workers had fallen by 20,000.

Capital Economics economist Ben May called the figure “a rare piece of good news for the economy” and said it underpinned the view “that Germany is still in better shape than most other eurozone economies.”

But Andreas Reest of UniCredit Markets warned that “the clock for the German labour market is literally ticking. It is only a matter of time before the economic slowdown will be felt.”

The German economy contracted by 0.5 percent in the second quarter of 2008, the first time in four years that activity decreased.

At Global Insight, Timo Klein said he expected unemployment “to fall modestly further during the latter months of 2008 and possibly even in early 2009, despite the dampening influence from the slowdown in economic growth.”

At the end of August, Germany had a total of 3.196 million unemployed workers.

Klein warned, however, that the decline in unemployment “may temporarily stall during 2009” and noted that despite the improvement, consumers were still unsettled by inflation fears.

Domestic consumption has failed to take off in Germany despite steadily falling unemployment as household purchasing power has been undermined by high energy and food prices.

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions.

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds.

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local.

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with.

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