Federal Employment Agency of Germany : The labour market in December 2015: Good development also at the end of the year

Presse Info001
vom05.01.2016

'The favourable development on the labour market also persists at the end of the year: In December, unemployment rose only due to seasonal reasons; demand for labour and employment subject to social security contributions continue to develop positively', said Frank-J. Weise, Chairman of the Executive Board of the Federal Employment Agency (BA), at today's monthly press conference in Nuremberg.

• Number of unemployed in December:
  +48,000 to 2,681,000
• Number of unemployed compared with the previous year:
  -82,000
• Unemployment rate compared with the previous month:
  +0.1 percentage points to 6.1 per Cent

Unemployment, underemployment and unemployment according to the ILO employment concept

The number of unemployed rose from November to December by 48,000 to 2,681,000 only due to seasonal reasons. An increase in unemployment in December is normal. However, it had previously been higher on average. Seasonally adjusted, unemployment decreased by 14,000 in comparison with the previous month. Compared to the previous year, 82,000 less people were registered as unemployed.

Underemployment, which also covers persons taking part in relieving employment and training measures and those suffering from short-term incapacity for work, fell seasonally adjusted by 4,000. In total, 3,524,000 people were affected by underemployment in December 2015. This was 147,000 less than in the previous year.

In November, the unemployment figures determined by the Federal Statistical Office (Statistisches Bundesamt) in accordance with the ILO employment concept were 1.94 million and the unemployment rate was 4.6 per cent.

Trend in the unemployment benefit scheme

In December, 798,000 people were registered as unemployed in the unemployment benefit scheme (Social Code III). This was a decrease of 68,000 compared to December 2014. A total of 782,000 persons were in receipt of unemployment benefits in December 2015; 65,000 less than one year ago.

Development in the basic benefit scheme for job seekers

In December, 4,300,000 people were in receipt of unemployment benefits (Type II) in the basic benefit scheme for job seekers (Social Code II). In comparison with December 2014, this was a decrease of 22,000 persons. Of the total number of persons of working age living in Germany, 8.0 per cent thus required assistance. In the basic benefit scheme for job seekers, 1,883,000 were registered as unemployed; 14,000 less than one year ago. A large proportion of those receiving unemployment benefit (Type II) is not unemployed. The reason for that is that these persons are economically active for a minimum of 15 hours per week, look after small children, care for relatives or are still in vocational training.

Gainful employment and employment subject to social security contributions

Seasonally adjusted, gainful employment and employment subject to social security contributions have continued to grow. According to data from the Federal Statistical Office, the number of those in gainful employment (based on the national concept) rose in November by 42,000 after seasonal adjustment compared to the previous month. Compared to the previous year, it has increased by 423,000 to 43.49 million. According to a projection by the Federal Employment Agency, employment subject to social security contributions rose by 60,000 from September to October after seasonal adjustment. At 31.39 million people, employment has increased by 713,000 compared to the previous year. There have been increases in particular in the industries of care and social services, trade and other economic services compared to the previous year.

Demand for labour

The demand for new employees continues to experience an upward trend. In December, the Federal Employment Agency had 591,000 registered vacancies; 93,000 more than one year ago. Seasonally adjusted, demand has increased by 10,000 compared to the previous month. Workers were in demand in particular in the field of sales as well as in transport and logistics due to the Christmas shopping season. Occupations in the fields of mechatronics, energy and electrical engineering, machinery and automotive engineering, metal production and processing, metal construction and in the healthcare industry followed. The vacancies index of the Federal Employment Agency, BA-X, an indicator for the demand for labour in Germany, rose by one point to 206 points in December 2015. The demand for labour increased slightly once again.