The Unemployment rate of Germany attained a value of 3.10 % in 2023
The indicator recorded a historical change (bps difference) of 74 bps between 2020 to 2023, and is expected to decline by...
GlobalData projects the figure to change by 17 bps between 2024 and 2028, reaching...
Unemployment
Unemployment is a term used to describe people who are actively looking for work but are unable to find one. The unemployment rate is derived by dividing the total number of unemployed persons by the total number of people in a certain region or workforce. It is one of the most important markers of a country's economic health.
Global Unemployment
As per the International Labour Organization, the average regional unemployment rate at the end of 2021 has been estimated at 9.6%, which represents an improvement from the 10.6% it reached in 2020, but a setback compared to the 8% that was recorded for 2019, which in this case is used as a reference to calculate the impact of two years of the pandemic.
According to the Organization for Economic Cooperation and Development (OECD), April 2022 published its February 2022 unemployment figures: the unemployment rate in the OECD areas dropped below the pre-pandemic rate. This is the lowest level since the start of this data series in 2001. The number of unemployed workers in the OECD area also continued to fall, reaching 34.9 million, 0.7 million below its pre-pandemic level.
Unemployment Rate of Germany
The unemployment rate in Germany in 2021 stood at 3.6%. Between 2018-2021, the unemployment rate in Germany was highest in 2020 at 3.8% and lowest in 2019 at 3.1%. The unemployment rate decreased by 5.3% on a year-on-year basis in 2021 and increased by 7.0% between 2018-2021.
The unemployment rate has been exhibiting a downward trend since March 2021. It declined to 3.1% in January 2022 from 3.7% in March 2021. Reopening initiates have restored several jobs lost due to COVID-19 restrictions. With the gradual easing of restrictions and reopening of the economy, Germany has been exhibiting signs of recovery. GlobalData forecasts the unemployment rate to decrease to 3.5% in 2022. In 2023 and 2024, the unemployment rate is projected at 3.4% and 3.93%, respectively, according to GlobalData. In January 2022, the youth unemployment rate of Germany for males stood at 6.1% of the youth labor force and for females at 5.3%, which is lower than other OECD countries.
The German state bank, KFW, also introduced lenient lending schemes for companies affected by pandemics and for protecting their workers from unemployment. The government has also expanded access to short-time work ‘Kuzarbeit’ to assist people and companies struggling with the unemployment scenario in the country.
Factors that Cause Unemployment
Recession, government policies, geographical labor mobility, technological advancements, global economy, expanding population, and education, training, and skill development of workers are some of the primary elements that influence unemployment in a country.
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