The weakening economy in Germany is having an increasing impact on the labor market: In July, 2,809,000 people were unemployed, 82,000 more than in the previous month. The increase is “not usual in this dimension,” said Daniel Terzenbach, member of the Executive Board of the Federal Employment Agency, on July 31 during the monthly press conference in Nuremberg. At the same time, compared to the same time last year, there are now 192,000 more unemployed.
“The figures from Nuremberg show a labor market that remains under pressure,” commented Leonie Gebers (SPD), State Secretary in the Federal Ministry of Labor, on the development. The “pressure” is especially high in the automobile, chemical and construction sectors—up to now, strongholds of productive employment in Germany. But, whereas there are more and more signs of a depression, the official narrative is still speaking of “recession.”
Granted, the summer break regularly leads to an increase in unemployment, as companies often only start hiring after the summer vacations. However, more than 20,000 job cuts are already announced in several leading automotive suppliers, with 14,000 (of 58,000 jobs in total) at the ZF Friedrichshafen company alone. All of these companies report substantial losses in the e-car sector, with investments not paying off due to low car sales.
Of note, a particular problem is the high unavailability of apprentices. Industry is looking for 204,000 new apprentices, but only 121,000 have enlisted for getting a job.
