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Unemployment, retail sales hold steady as economy slows

German unemployment was unchanged in August at 7.0 percent of the workforce, while retail sales were flat in July, official data showed Wednesday as Europe's biggest economy tried to find its footing.

Published: 31 August 2011 11:24 CEST
Unemployment, retail sales hold steady as economy slows
Photo: DPA

Economic activity slowed almost to a halt in the second quarter of the year, and officials in Berlin have been counting on household spending to pick up some of the slack from exports, Germany’s traditional growth engine.

The Federal Labour Office said the seasonally-adjusted number of people seeking work had decreased by 8,000 this month, whereas economists polled by Dow Jones Newswires had expected a slightly bigger decline of 10,000.

“Despite weaker growth of the German economy, the labour market situation improved again,” the office commented in a statement.

ING senior economist Carsten Brzeski noted that “the German labour market remains strong but it would be naīve to think that the labour market could be totally immune against the debt crisis and the economic slowdown.

“With employment at historical highs, favourable demographics and an economy that is slowing but not contracting, the labour market should remain growth-supportive” however, he added.

Meanwhile seasonally-adjusted retail sales were unchanged in July from the previous month, the national statistics office said, after leaping in June by a revised 4.5 percent.

Analysts had forecast a seasonally-adjusted drop of 2.0 percent on the month, but economists note the indicator is volatile and subject to frequent revisions.

Last week, a survey by the GfK research institute found that German consumer sentiment had been hit by the transatlantic debt crisis and fears of a new recession, falling to its lowest level since late last year.

But Commerzbank analyst Ulrike Rondorf found reason for cheer in the unchanged sales data, given the strong uptick in June.

“It means that sales in July are well above the average for the second quarter,” she said.

While expecting weaker second-half growth, Rondof added that “as long as the sovereign debt crisis does not escalate and an uncertainty shock occurs – and there are no signs of this happening yet – the upswing should continue.”

German officials expect economic activity to expand by around 3.0 percent this year.

AFP/mry

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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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