The number of unemployed people in Germany rose again in August - but by no more than is usual for this time of year. According to new figures from the Federal Employment Agency, a total of 2.955 million people were unemployed in August, 45.000 more than in July and 636.000 more than a year ago. 

Unemployment rate in Germany rises to 6,4 percent

Overall, the unemployment rate in Germany rose by 0,1 percentage points in August, to 6,4 percent. However, this is not especially out of the ordinary, since unemployment typically tends to rise in August as economic activity takes a nosedive before the summer holidays. For comparison, in August 2019 the number of people without a job increased by 44.000 compared to the previous month. 

The chief executive of the Federal Employment Agency, Detlef Scheele, therefore said that in August as in July, there was no additional corona-related rise in unemployment in Germany. Nevertheless, he also noted that “the effects of the pandemic on the labour market are still very visible.” 

Number of employees on Kurzarbeit continues to fall

According to preliminary figures from the Federal Employment Agency, 5,36 million people in Germany were on short-time work (Kurzarbeit) in June. In May, the number was 5,82 million and in April it was as high as 5,98 million. 

In the meantime, after the massive increases in March and April, the number of employees for whom companies register Kurzarbeit has continued to decline. Between August 1 and August 26, the Federal Employment Agency received registrations for 170.000 employees. A similar decline was noted in a survey by the Ifo Institute, which found that 37 percent of companies were making use of Kurzarbeit in August, compared to 42 percent in July. 

Various experts are therefore currently seeing signs that the labour market in Germany is recovering - thanks in part to the Kurzarbeit scheme, which has limited the number of job losses. However, many are concerned about the rising number of infections and the threat of new restrictions. According to Nuremberg consumer research company GfK, this has already dampened consumer confidence.