Recovery despite war in Ukraine: unemployment rate drops to 5.0%

Status: 03.05.2022 12:40 p.m.

Despite the economic consequences of the war in Ukraine, the German labor market is still on the road to recovery. In April, 53,000 fewer people were unemployed than the previous month. The rate fell to 5.0%.

Thanks to a further spring upturn in the labor market, the number of unemployed in Germany fell further. In April, 2.309 million people were unemployed. This is 53,000 less than in March and 462,000 less than a year ago, according to the Federal Employment Agency.

The rate fell by 0.1 point to 5.0%. Compared to April 2021, it even fell by one percentage point. “With the spring stimulus and the easing of the corona measures, the recovery in the labor market continues,” said Detlef Scheele, CEO of the Federal Employment Agency. “However, development is slowed down by Russia’s war against Ukraine.”

Partial unemployment is gaining importance

Partial unemployment is becoming more and more important for companies. From April 1 to 27, companies reported partial unemployment for 120,000 people. The notification must occur before the filing of the complaint. Actual partial unemployment is generally lower.

Data on this is only available up to February. This month, partial unemployment benefits were paid to 723,000 people. For January, the federal agency last reported 654,000 part-time workers. The number may change slightly due to late registrations.

Germany’s business demand for workers is at an all-time high: the Federal Employment Agency’s employment index climbed to 138 points in April and thus the highest level since the start of the series of data in 2005. The end of most corona restrictions and the spring recovery would have led to growing demand in almost all sectors, he said.

291,000 training positions are vacant

There are still problems in the training market. From October 2021 to April 2022, 339,000 candidates for an apprenticeship had registered with employment agencies and Pôle Emploi, i.e. 6,000 less than during the same period last year.

In April, 182,000 young people had found neither an apprenticeship nor an alternative, reports the Federal Agency. 466,000 training places have been reported, 33,000 more than a year ago. 291,000 have so far remained vacant.

Rates also at a historic low in the euro zone

Unemployment also fell to a record low in the eurozone. The unemployment rate fell in March from the previous month by 0.1 points to 6.8%, as reported by the statistics office Eurostat. This is the lowest level since the introduction of the euro.

Unemployment in the 19 Member States of the euro zone had already tended to fall in recent months. A year earlier, the rate was 8.2%. The evolution was similar throughout the EU.

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