Read news from:
Austria
SHARE
COPY LINK

WORKING IN GERMANY

Unemployment rises in Germany as job vacancies remain at ‘high level’

The number of unemployed people in Germany rose to 2.696 million in August, said Employment Agency head Andrea Nahles at a presentation of labour market figures on Thursday. But the labour situation isn't all doom and gloom.

Published: 31 August 2023 16:43 CEST
Coworking in Germany
Employees have a chat at a coworking space in Oldenburg, Lower Saxony. Photo: picture alliance/dpa | Hauke-Christian Dittrich

That was 79,000 more than in July and 148,000 more than a year ago. 

“The summer break and the weak economy are leaving their mark on the labour market,” Nahles said.

But Nahles also emphasised that “compared to the poor economic situation, the labour market is still in a good position.”

READ ALSO: Bürgergeld: Germany’s unemployment benefit to rise by 12 percent

The unemployment rate for August increased by 0.1 percentage points, bringing it to 5.8 percent. Compared to the same month last year, the rate rose by 0.2 points.

It is not unusual for unemployment to rise in the summer. Companies are less likely to hire new staff during the holiday months, and new contracts usually start only in autumn. Nevertheless, the increase this year is relatively large, said Nahles. 

Seasonally adjusted, that marks a rise of 18,000 open positions. Under-employment has also gone up: the statistic includes people who, for example, are undergoing further training.

Nahles also pointed out that the labour market barometer of the Institute for Employment Research (IAB) showed uncertainty and a gloomy mood. 

Nevertheless, she said that people shouldn’t lose sight of the fact that the labour market is in “solid basic condition”. In a historical context, unemployment is still low.

German Labour Minister Hubertus Heil (SPD) announced that the labour market had held its ground in August despite the difficult environment. 

More need for students and trainees

The decline in applications on the Ausbildung (training) market, which had been observed since 2017, has “fortunately come to a halt”, Heil added.

“We are seeing a stabilisation,” Nahles also said in Nuremberg, where she presented the statistics.

The training market was still in motion in August, Nahles said. By the balance sheet date on September 30th, the number of unfilled training places and applicants without a job will likely be significantly reduced. 

There are currently work placement campaigns underway, said Nahles, pointing out that experience had shown that many young people could still be matched with jobs.

In August, 771,000 job vacancies were registered with the BA, 116,000 less than a year ago. The reported demand for new employees continues to be moderate, but the number of reported vacancies is still at a “comparatively high level,” she added.

READ ALSO: Why Germany’s skilled worker shortage is greater than ever

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

WORKING IN GERMANY

How many skilled workers will immigrate to Germany with the Opportunity Card?

As a new jobseekers' visa that is designed to attract foreign workers launches in Germany in June, one question remains: how many skilled labourers will it actually bring in?

Published: 30 May 2024 12:09 CEST
How many skilled workers will immigrate to Germany with the Opportunity Card?

From June 1st, foreign nationals from beyond the EU who want to find a job in Germany will be able to apply or a Chancenkarte (Opportunity Card) to do so.

The Opportunity Card functions as a temporary work visa, allowing card holders to enter the country and then work part-time or to take on two-week trial work for up to a year.

It comes as one of several immigration policy changes meant to attract badly needed young workers amidst Germany’s severe labour shortage. 

Policy makers hope that by allowing workers to more easily enter the country and start work, a new generation of skilled workers will take their chance to immigrate to the Bundesrepublik. But to what extent the new visa opportunity will succeed in narrowing Germany’s labour gap remains to be seen.

How many workers might apply for a Chancenkarte?

As Germany’s post-war and baby-boomer generations enter retirement, the country is experiencing a growing labour shortage that is putting significant pressure on a number of industries.

According to the draft law on the further development of skilled worker immigration, which led to the creation of the opportunity card, the government expects up to 30,000 opportunity cards to be applied for per year.

That would be a significant boost to the number of incoming skilled workers compared to figures seen in recent years. In 2022, a total of 38,820 skilled professionals with a recognised qualification entered the country, according to the latest Migration Report prepared by the Federal Office for Migration and Refugees.

So an additional 30,000 workers per year would be a laudable increase.

However, Germany’s coalition government has previously stated the goal of attracting 400,000 qualified professionals from abroad each year. This figure was based on previous German Economic Institute (IW) calculations that by 2030, Germany could face a shortage of roughly 5 million workers.

READ ALSO: Q&A – How foreign jobseekers in Germany can maximise their chances in 2024

Considering that goal, the 30,000 workers that could be attracted by the opportunity card would amount to just 7.5 percent of Germany’s target.

But given the severity of the labour shortage in key industries, anything is better than nothing.

rail track construction

Railroad construction, called “Berufe im Gleisbau” in German, is a bottleneck occupation. More track construction workers are badly needed to keep the country’s railway infrastructure in-tact in the future. Photo: picture alliance/dpa | Jan Woitas

What are the ‘bottleneck’ occupations?

Principally, the opportunity card is designed to ease immigration requirements for all kinds of skilled workers.

But workers from so-called bottleneck occupations are granted an extra point according to the point-based system that will be used to review applications.

Put simply, bottleneck occupations are those in which there are not enough incoming workers to replace the retiring workforce. 

Germany’s employment agency assesses bottleneck occupations in the country. Last year the agency announced that the number of bottleneck occupations had risen sharply, from 148 to 200 in 2022 – amounting to a shortage in one out of every six occupations in Germany.

A spokesperson for the employment agency, told The Local that: “Nursing specialists, occupations in sanitary, heating and air conditioning technology, surgical assistants, construction electricians, and rail construction workers”, are a few examples of key bottleneck occupations currently.

READ ALSO: Hit by worker shortage, German city gets students to drive trams

For more information on the Chancenkarte and who is qualified to apply read our explainer.

SHOW COMMENTS