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Jobless rate plunges towards 3m mark

The number of unemployed people in Germany fell twice as fast as expected in September and is now poised to drop below the psychological barrier of 3 million, official data showed on Thursday.

Published: 30 September 2010 11:42 CEST
Jobless rate plunges towards 3m mark
Photo: DPA

On the back of a string of good news for the economy, the unadjusted rate of unemployment dropped to 7.2 percent of the workforce, the federal labour office said.

“This is the lowest level since November 2008,” ING senior economist Carsten Brzeski noted. “On time for the 20th anniversary of German reunification, the German labour market has become a real success story.”

The number of people seeking work fell by a seasonally-adjusted 40,000 to 3.031 million people. Economists polled by Dow Jones Newswires had forecast a more modest decline of 20,000.

German unemployment stood at an unadjusted 7.6 percent in August and the level in September marked the 15th consecutive monthly decline.

The fall pushed the adjusted jobless rate down to 7.5 percent from 7.6 percent in August.

On Tuesday, Chancellor Angela Merkel forecast the number of unemployed might fall below the politically significant level of 3 million by the end of the year.

“We may get to 3 million or perhaps slightly below,” Merkel said after the economic research group GfK reported that German consumer sentiment was at a three-year high, largely as a result of improvements in the labour market.

The labour office said the strong decline in September was a result of “the economic recovery and a typical surge in the autumn” when young graduates often begin working.

“There is strong corporate demand for workers,” added Frank-Jürgen Weise, who heads the office.

Earlier on Thursday, the IG Metall trade union said it had accepted a 3.6 percent wage increase for about 100,000 workers in the steel sector after initially calling for a 6.0 percent pay hike.

Brzeski noted that “looking ahead, today’s labour market report bodes well for private consumption.

“Dropping unemployment numbers should bring psychological support for consumers, increasing the feel-good-factor.”

The export-oriented German economy could also get more support from business investment, the Ifo economic research institute said.

“Another acceleration of the pace of expansion is expected toward the end of the year, as many firms will want to take advantage of the favourable depreciation terms that expire at the end of 2010,” Ifo said.

AFP

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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.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
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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