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German unemployment rate rises for first time in five years

The increase comes a month after Germany boasted its lowest unemployment rate since reunification.

Published: 29 May 2019 12:02 CEST

German unemployment rate rises for first time in five years

A man runs near Thuringia's work agency. Photo: DPA

Germany's unemployment figures rose in May for the first time in more than five years, official data showed Wednesday.

The shift occurred amid signs of slowing growth in Europe's biggest economy, and federally corrected data about the number of people receiving unemployment benefits.

Five percent of people were out of work in Germany, up 0.1 percentage points, reported Federal Labour Agency.

In March and April, the countrywide jobless rate was 4.9 percent — the lowest since reunification in 1990.

SEE ALSO: Germany's unemployment rate at lowest level in nearly 30 years

May's figures marked the first time Germany's unemployment rate has increased since November 2013 — when it was up to 6.9 percent.

“The labour market is showing the first effects of the recent somewhat weaker economic development,” the labour agency's chief Detlef Scheele said in a statement.

In absolute terms, the number of people unemployed rose by just 7,000 in May to 2,236,000, but the seasonally adjusted increase is 60,000.

FIND A JOB: Browse thousands of English-language jobs in Germany

New classifications as unemployed

Scheele said “companies demands for new employees weakened noticeably at a high level,” but he also put the changed figures down to a data adjustment made following a series of checks on people receiving unemployment benefits.

In April the Federal Audit Office conducted inspections of 302 German job centres, finding that that there were 30,000 to 40,000 more unemployed people than previously reported.

The discrepancies, with the Audit Office did not consider to be deliberate, occurred after Hartz IV welfare recipients – who were again fit to work after additional training or the end of the illness – had not yet been re-classifed as unemployed.

Looking to the country's different regions, the unemployment rate for the month remains lowest in the southern states of Bavaria, at 2.7 percent, and Baden-Württemberg at 3.1 percent.

In comparison, the northern city of Bremen posted the national high of 10 percent, while capital Berlin came in second at 7.8, down slightly from 8.1 in April.

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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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