Jobs in Germany: Unemployment rate drops unexpectedly

Jobs in Germany: Unemployment rate drops unexpectedly
An employee at the 'Schankwirtschaft Barfuß' in Hanover putting away tables before the November lockdown began. Photo: DPA
German unemployment unexpectedly fell in November, official data showed Tuesday, but restrictions to curb the second coronavirus wave caused a jump in the number of people on short-time work.

The seasonally adjusted jobless rate in Europe's top economy ticked down to 6.1 percent last month from 6.2 percent in October, according to the BA federal labour agency.

Analysts surveyed by Factset had expected the unemployment rate to climb slightly to 6.3 percent in November.

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The BA data however also showed that another 537,000 people were placed on short-time employment between November 1st and 25th, joining millions of others.

“The labour market reacted to the restrictions in November — but
fortunately not with an increase in redundancies at the moment,” BA chairman Detlef Scheele said in a statement.

READ ALSO: How to apply for Kurzarbeit in Germany when your working hours are reduced

Another round of shutdowns introduced in November — including bars, restaurants, hotels and gyms — saw employers rely more heavily on a subsidised scheme that allows them to reduce workers' hours.

The November numbers “suggest that the German labour market could go through the crisis almost unharmed,” said ING bank analyst Carsten Brzeski.

“But the rising number of short-time workers, as well as the longer-term impact from the second lockdown, clearly argue against too much optimism.”

The current virus curbs are expected to last into the new year, Chancellor Angela Merkel has said.

The German government has pledged billions of euros in extra support for the companies worst hit by the renewed shutdowns, but analysts have cautioned it may not be enough to prevent a wave of insolvencies.

READ ALSO: Working in Germany: How is the pandemic affecting jobs?

On a seasonally-adjusted basis, the number of unemployed people is 39,000 lower in November than in October.

But compared with the same month last year, the number increased by more than half a million.

Before the coronavirus struck, Germany's unemployment rate had been at a record low of around five percent.


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  1. Yeah, when the unemployed stop seeking employment, they are no longer considered unemployed. Government are lying to you about everything. If you think the government is here to help,then you don’t know history.

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