.png)
January 3, 2025
The Federal Employment Agency (BA) has published the latest labor market figures for December 2024. As expected, the unemployment rate rose slightly at the end of the year, reaching 6.0 percent. This represents an increase of 0.1 percentage points compared to the previous month, November. The number of registered unemployed increased by 33,000 to 2.807 million people. Compared to December of the previous year, this represents an increase of 170,000 unemployed.
BA head Andrea Nahles commented on the figures, pointing to the usual winter break in the labor market. Seasonal effects such as expiring fixed-term contracts, a lower number of new hires before Christmas, and weather-related restrictions in sectors such as construction traditionally contribute to an increase in unemployment in December. The data used for the statistics were collected up to December 12th.
In addition to seasonal factors, the continuing economic weakness also plays a role. The German economy has been subdued throughout 2024, and experts fear a further increase in unemployment in the winter. The weak economy is also reflected in the subdued demand for labor. The BA job index (BA-X), which reflects the demand for personnel in Germany, remained unchanged at 106 points in December. Compared to the same month last year, however, this is a decrease of nine points. Companies' willingness to hire has decreased compared to the previous year in almost all economic sectors.
The use of short-time work has increased significantly in 2024. In October, cyclical short-time work benefits were paid for 287,000 employees, after 225,000 in September. In December, too, numerous companies registered short-time work for their employees, particularly in sectors such as metal processing, automotive manufacturing, mechanical engineering, and the electrical industry.
In view of the sluggish economic outlook, the Federal Employment Agency expects a further increase in unemployment in the coming year. The labor market is facing challenges, and developments in the coming months will depend crucially on economic development.
In times of change in the labor market, Mindverse, a German company for AI-supported content solutions, offers innovative technologies and customized applications. Mindverse supports companies with AI text generation, image creation, research tools, and the development of chatbots, voicebots, AI search engines, and knowledge systems. As an AI partner, Mindverse accompanies companies in their digital transformation and in overcoming the challenges of the future.
Bibliography: - https://www.handelsblatt.com/politik/konjunktur/arbeitsmarkt-zahl-der-arbeitslosen-steigt-im-dezember/100098153.html - https://www.ad-hoc-news.de/wirtschaft/die-zahl-der-arbeitslosen-in-deutschland-ist-im-dezember-2024-um-170-000/66403205 - https://www.stern.de/wirtschaft/news/arbeitsmarkt--zahl-der-arbeitslosen-steigt-im-dezember-35351842.html - https://www.faz.net/agenturmeldungen/dpa/arbeitslosenquote-im-dezember-leicht-gestiegen-110208738.html - https://www.arbeitsagentur.de/news/arbeitsmarkt - https://www.nrwz.de/wirtschaft/arbeitsmarkt-im-dezember-arbeitslosigkeit-leicht-gestiegen/500807 - https://www.zeit.de/news/2025-01/03/arbeitslosenquote-im-dezember-leicht-gestiegen - https://www.ad-hoc-news.de/wirtschaft/zahl-der-arbeitslosen-steigt-im-dezember/66403194