The unemployment rate in Germany ticked up slightly in August compared to the previous month, rising by 0.1 percentage points to 6.1%, according to initial estimates released by the Federal Employment Agency on Friday.
The total number of unemployed people in Germany rose by 63,000 to 2.872 million in August compared to July due to seasonal factors, the agency said. The total is 176,000 more than in August 2023.
The Federal Employment Agency based the estimates on figures available up to August 14.
“The labour market continues to feel the effects of economic stagnation. Unemployment and underemployment continued to rise during the summer break,” said Andrea Nahles, the chairwoman of the Federal Employment Agency.
The demand for workers by German companies is also declining, according agency figures. A total of 699,000 vacancies were registered with the employment agencies in August, 72,000 fewer than a year ago.
Short-time work, in which German companies can agree to reduce hours for workers instead of making layoffs during downturns, is on the rise. The number of workers accessing benefits for short-time work rose to 232,000 in August, up from 215,000 in May and 223,000 in April.
Things look more favourable on the training market.
From October 2023 to August 2024, 418,000 young people registered as applicants for an apprenticeship or other training position, 10,000 more than in the same period last year.
In August, 82,000 had found neither a training place nor an alternative. At the same time, 158,000 of the total of 502,000 training places offered by companies had not yet been filled.
According to the Employment Agency, the number of unplaced applicants and the number of vacant training places will decrease significantly by the end of September, and the market is still on the move.
