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BackUnemployment in Bavaria in September was higher than it has been in 20 years
Unemployment in Bavaria in September was higher than it has been in 20 years
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Die Zeit1 hour agoBusiness1 min readGermanyView original

Unemployment in Bavaria in September was higher than it has been in 20 years

The autumn recovery brings a slight decline, but the level remains high - the decline in employees subject to social security contributions is a cause for concern

Quick Look

  • The autumn recovery caused unemployment in Bavaria to fall slightly in September, but it remains at the highest September level in 20 years.
  • Around 331,000 people were registered in the Free State.

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Why It Matters

The regional directorate of the Federal Employment Agency publishes monthly data on labor market developments in Bavaria.

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The autumn recovery caused the number of unemployed people in Bavaria to fall slightly in September. Nevertheless, unemployment is higher than it has been this month for 20 years, as the regional directorate of the Federal Employment Agency in Nuremberg announced. Accordingly, around 331,000 people were registered as unemployed in the Free State in September - a good 3,200 fewer in August, but almost 6,700 more than a year ago.

This is a very high level for September, explained the head of the regional directorate, Markus Schmitz. According to statistics, unemployment fell at the beginning of the school and training year, especially among younger people. However, an above-average increase was recorded among the long-term unemployed, the severely disabled and those over 55, as they are particularly affected by unemployment due to the weak economy and structural change in industry.

The number of vacancies gives hope

According to the regional directorate, the unemployment rate in September was 4.2 percent, the same as the previous year - and was therefore still the lowest in Germany. The cut-off date for the current statistics was September 14th. The number of vacancies that companies reported to employment agencies is cautiously optimistic, said Schmitz. “We are observing a slight increase here compared to the previous year, especially in the manufacturing sector, which is so important for Bavaria.”

Experts are particularly concerned about the decline in the number of employees subject to social insurance contributions. According to the most recent extrapolated figures, 5.93 million people were in employment subject to social security contributions in Bavaria in July. Normally this number increases in July compared to the previous year, but this year there was a significant decrease of 18,700 employees, according to the regional directorate. Given the difficult economic situation, the reduction in employment is particularly evident in industry and trade.

Open Questions

  • How will employment develop in the coming months?
  • Are political countermeasures against structural change effective?

Related Topics

This article was originally published by Die Zeit.

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