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EMPLOYMENT

German jobless rate lowest since unification

The German labour market continued to shine in December, shrugging off current economic weakness, with unemployment now at its lowest level since unification, official data showed on Wednesday.

German jobless rate lowest since unification
File photo: workers at a shipyard in Bremen. Photo: DPA

The number of people registered as unemployed in Europe's biggest economy fell by a seasonally-adjusted 27,000 to 2.841 million in December, the Federal Labour Office said.

That is the lowest number since December 1991, although the jobless total came close to these levels in early 2012.

The unemployment rate — which measures the jobless total against the working population as a whole — slipped to 6.5 percent in December from 6.6 percent in November in seasonally-adjusted terms, the office calculated.

The jobless rate has never been lower since Germany reunited in 1990 after the fall of the Berlin Wall the previous year.

"The labour market continued to develop favourably, independent of the weak economy," the labour office said.

"The trend in employment remains pointed upwards."

The German economy, Europe's powerhouse, has lost some of its shine in recent months as uncertainty resulting from geopolitical crises such as Ukraine undermined the outlook for recovery.

The new political crisis in Greece is also casting a shadow over the eurozone as a whole, although most commentators believe the fallout from that will remain limited.

Sentiment indicators are tentatively pointing up again. And Germany averted a new recession when gross domestic product (GDP) expanded by a modest 0.1 percent in the third quarter.

Private and government consumption is currently keeping the German economic engine ticking over, while falling investment is preventing a more broad-based recovery, the latest GDP data showed.

GDP "is likely to have expanded only slightly again in the fourth quarter," the labour office said, but added that "slightly stronger growth can be expected during the course of 2015."



'Great resilience'



Natixis economist Johannes Gareis said the German labour market "has shown great resilience in the course of 2014… and exhibits no signs of spillovers from the current slowdown in economic growth."

In fact, the buoyant labour market "continues to be reliable driver of Germany's growth," boosting household confidence and supporting wage growth and thus private consumption, the expert argued.

Retail sales, for example, climbed for the second month in a row in November, new data showed on Wednesday.

And that was "good news for private consumption growth in the fourth quarter," Gareis said.

Berenberg Bank chief economist Holger Schmieding agreed.

"Germany apparently had an excellent start to the Christmas shopping season. Although the data are volatile and subject to revision, that points to a major gain in German private consumption in the fourth quarter," he said.

"Helped by the massive tailwind from low oil prices, German private consumption will likely be a major pillar of German and eurozone growth in 2015," the economist said.

Nevertheless, Germany must not become complacent, Schmieding warned. 

The introduction of a national minimum wage from January 1st "is undermining the very basis of its labour market success," he said.

Postbank economist Thilo Heidrich also felt that the falling trend in unemployment would not be able to maintain its current momentum.

For 2014 as a whole, the jobless total averaged 2.898 million and the jobless rate stood at 6.7 percent, the lowest level since unification.

But that could rise slightly in 2015, even if it would remain very low from an historical point of view, Heidrich predicted.

SEE ALSO: German inflation lowest since 2009

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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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