The weak seasonal recovery in the German job market persisted in May. According to the Federal Employment Agency (Bundesagentur für Arbeit), while the number of unemployed individuals dropped by 58,000 compared to the previous month, reaching 2.95 million, the figure actually rose by 31,000 when compared to the same period last year.
Seasonal declines in unemployment are generally anticipated during the spring, partly because fewer workers are needed in the construction sector during the winter. Consequently, comparisons to the previous year are usually more indicative of the underlying economic climate.
In April, the unemployment rate stood at 6.3 percent-a decrease of 0.1 percentage points from the preceding month, but an increase of 0.1 percentage points compared to the previous year. Similarly, the measure of “underemployment” decreased by 8,000 people in May, after seasonal adjustments, but still saw an increase of 15,000 individuals compared to last year, reaching 3.628 million.
Andrea Nahles, the CEO of the Federal Employment Agency (BA), stated in Nuremberg that “despite a drop in unemployment, the spring recovery this year has not truly gathered pace”.
On a positive note, demand for labor stabilized at a low level. In May, the BA recorded 643,000 available job positions, which was an increase of 8,000 compared to the same time last year.
