“The Corona crisis has a significant impact on the labour market: the number of unemployed in Germany has increased. In June, 2.853 million people were without a job, 40,000 more than in May and 637,000 more than a year ago, the Federal Employment Agency announced on Wednesday in Nuremberg. The unemployment rate rose 0.1 percentage points to 6.2 percent. Normally, the number of unemployed falls in June at the end of the spring revival due to seasonal factors.
In April, the highest level of short-time workers ever reached in the Federal Republic was reached, according to the Federal Agency when presenting its monthly statistics. As a result, 6.83 million people were on short-time work in April, up from 2.49 million in March.
In total, companies for more than twelve million people have now registered short-time work in the Corona crisis. In addition to the 11.8 million in March, April and May, advertisements for 342,000 people were added in June, the Federal Agency reported. Experience has shown that short-time working is not carried out in all indicated cases. The Federal Agency expects the companies to be delayed by three months.
Number of Hartz IV recipients also increases
“The labour market is still under pressure because of the Corona crisis,” said Detlef Scheele, CEO of the Federal Agency. “However, the massive use of short-time working is stabilising the labour market.”
The number of Hartz IV recipients in Germany has also increased during the Corona crisis. The number was 4.076 million in June, 152,000 more than in June 2019. According to the Federal Agency, 7.5 percent of people of working age were in need of assistance in June.
According to the Ifo Institute, the German economy is expected to recover appreciably after a record slump in the second quarter. After an expected 11.9 percent decline in gross domestic product (GDP) between April and June compared to the previous quarter, it is expected to rise by 6.9 percent in the third quarter and by 3.8 percent by the end of 2020, Munich researchers and government advisers said on Wednesday. Expect a climb from the Corona Valley. “From now on, things are gradually going up again,” said Ifo’s head of economics Timo Wollmershäuser.