German Labor Market Continues to Weaken as Unemployment Rises
Adjusted for seasonal effects, the number of jobless people increased "noticeably" by 19,000, although the figure usually falls at this time of year, said the agency.
"The weakness in the labor market continues," BA head Andrea Nahles said at a monthly press conference, adding that companies remain cautious about hiring new staff.
According to the ifo Institute for Economic Research, Germany's ongoing economic slump in 2024 will also hamper the labor market. Nevertheless, compared to overall development it remains in "robust shape." Following a mild 0.2 percent recession in the previous year, ifo said in its forecast last week it only expects slight economic growth of 0.4 percent this year.
The country is also growing overall, with the number of employees hitting 45.9 million in May, the German Federal Statistical Office said on Friday. However, a massive shortage of skilled workers is still threatening Europe's largest economy, as hundreds of thousands of jobs in sectors such as IT and nursing remain unfilled.
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