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German unemployment stable despite recession warning

Germany's labour market remains robust, but is starting to feel the impact of a slowing economy, official data showed Thursday.

Published: 29 August 2019 12:45 CEST

German unemployment stable despite recession warning

A federal employment agency building in Germany. Photo: DPA

Federal labour agency (BA) chief Detlef Scheele said in a statement that “the weak economic phase” Germany is experiencing has also left “a slight mark” on the job market amid fears of a looming recession, but “all in all, however, it is proving to be robust”.

Seasonally-adjusted figures showed five percent of people out of work in August, the same level for the previous three months consecutively.

READ ALSO: German economy is down on its knees: Is a recession looming?

However in absolute terms – widely referenced in public debate but less representative of underlying trends – unemployment increased 44,000 month-on-month to 2.32 million people out of work.

Meanwhile, vacancies fell by 8,000 in August, also in adjusted figures – the fifth consecutive decrease in a row.

The slight drop in figures mirrors a more worrying trend in Europe's biggest economy with the central bank or Bundesbank having last week issued a warning that Germany could enter recession in the third quarter.

Falling orders against the backdrop of a trade war between the US and China, two of its main customers, have hit Germany's manufacturing industry hard.

The outlook for German growth “is not good” and “dark clouds are fuelling fears in the labour market”, says Martin Mueller, labour market expert at KfW Bank, but “there is no sign of a recession yet, however.

Lowest level in Bavaria

At regional level, the unemployment rate remains at its lowest in Bavaria, at 2.9 percent, and Baden-Wuerttemberg, 3.3 percent.

It remains highest in the capital Berlin, at eight percent, and the state of Bremen, where it is a Germany-high figure of 10.3 percent.

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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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