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Unemployment drops slightly

Germany’s unemployment rate in June fell slightly to 8.1 percent from 8.2 percent last month, but the slight improvement doesn’t mean the economy is out of troubled waters yet, analysts said on Tuesday.

Unemployment drops slightly
Photo: DPA

The Ministry of Labour said unemployment fell by 48,000, though more than 3.4 million Germans are still without work. Most of the improvement was in eastern Germany, where 33,000 new jobs were created as opposed to 15,000 in the west.

However, the numbers are not a sign of an improving economy or that the €80 billion stimulus packages are working, economists said. When adjusted seasonally, joblessness rose by 31,000, though the results were better than the loss of 50,000 jobs that economists predicted.

Compared to the same time last year, there are 250,000 less jobs in Germany.

German officials credit the Kurzarbeit, or “short time work” programme, for softening the blow of the recession on the labour market. More than one million workers are working fewer hours, but remain employed. The government subsidises a portion of their salaries for up to two years.

“We have saved hundreds of thousands of jobs through the short-time work program. Despite the breakdown of the economy, we have yet to see a dramatic rise in unemployment,” said Labour Minister Olaf Scholz on Tuesday in Berlin.

But Dr. Werner Marnette of Angela Merkel’s Conservative Christian Democrats told the BBC World Service he fears the programme is skewing the actual unemployment numbers.

“I’m afraid that we are facing much more unemployment and that means all these measures are somehow camouflaging the real situation,” said the former economy minister for the northern state of Schleswig-Holstein on the radio programme Business Daily Tuesday. “This [programme] is not the medicine for becoming competitive and overcoming the bad economic situation.”

He added that the government subsidy was propping up uncompetitive businesses and when the programme’s funding runs out, unemployment will increase drastically as companies are forced to fold.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

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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