[Germany] Unemployment decline in August as recovery continues

In Germany, the number of unemployed people declined slightly in August, unusually for the summer month, while the country’s jobless rate remained steady at 5.6 per cent, The Seattle Times reports.

In its last jobs report before a national election on September 26, the Federal Labour Agency said that 2.578 million people in the country were registered as unemployed in August. That was 12,000 lower than in July and 377,000 lower than the unemployment total in 2020.

It is the first time since 2010 that the number of jobless has dropped in August compared with the previous month. The upswing is said to reflect a pickup following the end of many COVID-related restrictions.

In seasonally adjusted terms, the unemployment rate dropped to 5.5 per cent from 5.6 per cent, the latest in a string of small declines, according to official statistics released on August 31.

Rises in unemployment in Germany and elsewhere in Europe have been moderate by international standards during the coronavirus pandemic. That is because employers made heavy use of salary support programmes - more commonly referred to as furlough schemes - allowing them to keep employees on the payroll until the economic recovery kicks in.

In Germany, the Federal Labour Agency pays at least 60 per cent of the salary of employees who are on reduced or zero hours.

The labour agency said it paid support for 1.59 million people in June, the most recent month for which it held estimates. That was down from 2.26 million in May and far below a peak of nearly 6 million in April 2020.

In Germany, the number of unemployed people declined slightly in August, unusually for the summer month, while the country’s jobless rate remained steady at 5.6 per cent, The Seattle Times reports.

In its last jobs report before a national election on September 26, the Federal Labour Agency said that 2.578 million people in the country were registered as unemployed in August. That was 12,000 lower than in July and 377,000 lower than the unemployment total in 2020.

It is the first time since 2010 that the number of jobless has dropped in August compared with the previous month. The upswing is said to reflect a pickup following the end of many COVID-related restrictions.

In seasonally adjusted terms, the unemployment rate dropped to 5.5 per cent from 5.6 per cent, the latest in a string of small declines, according to official statistics released on August 31.

Rises in unemployment in Germany and elsewhere in Europe have been moderate by international standards during the coronavirus pandemic. That is because employers made heavy use of salary support programmes - more commonly referred to as furlough schemes - allowing them to keep employees on the payroll until the economic recovery kicks in.

In Germany, the Federal Labour Agency pays at least 60 per cent of the salary of employees who are on reduced or zero hours.

The labour agency said it paid support for 1.59 million people in June, the most recent month for which it held estimates. That was down from 2.26 million in May and far below a peak of nearly 6 million in April 2020.