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German unemployment rate rises for first time since June

German unemployment was stable in February with a small increase, official data showed Tuesday, amid the pain of prolonged shutdowns to slow the spread of Covid-19.

Published: 2 March 2021 12:31 CET

German unemployment rate rises for first time since June

A woman walked past a closed cafe in Munich at the weekend. Photo: DPA

The seasonally adjusted jobless rate in Europe’s top economy stood at 6 percent, the same level as in January, according to the BA federal labour agency.

However, the number of unemployed people rose slightly for the first time since June, with an extra 9,000 people out of work.

In total, there were 509,000 more people unemployed than in February 2019.

Germany closed restaurants, bars, gyms and cultural centres in November before adding schools and non-essential shops in December as it was hit by a second coronavirus wave.

The measures have since been extended until March 7th, though some schools, hairdressers, attractions and shops have been allowed to reopen in parts of the country.

READ ALSO: ‘I look normal again’: German residents rejoice as hairdressers reopen

The shutdowns have prompted employers to rely more heavily on a government-subsidised scheme that allows them to reduce workers’ hours so as to avoid outright layoffs.

Another 500,000 employees were placed on the short-time working scheme in February, compared with 745,000 in January.

A total of almost 2.4 million workers were on short-time working arrangements in December.

“Short-time work continues to secure employment on a large scale and prevents unemployment,” BA chairman Detlef Scheele said.

READ ALSO: EXPLAINED: What you need to know about Germany’s ‘Kurzarbeit’ job support scheme

The average German worker saw a drop in real wages in 2020 for the first time since 2007, according to federal statistics agency Destatis.

Germany recorded 3,943 new Covid-19 cases in the past 24 hours on Tuesday and 358 deaths, according to the Robert Koch Institute health agency.

Chancellor Angela Merkel and German regional leaders are due to meet again Wednesday to discuss possible further relaxations of the shutdown measures.

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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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