Job prospects in Germany are the worst since 2020
The German Institute for Occupational and Labor Market Studies (IAB) reported that expectations for the labor market in Germany fell to their worst level since 2020.
The IAB has announced the results of the labor market barometer for August.
Thus, the institute’s labor market barometer decreased 0.6 points in August, to 100.5 points. Thus, the labor market barometer fell to its lowest level since 2020.
While the probability of job recovery decreased for the fourth consecutive month in August, the IAB statement stated that unemployment is expected to rise and the barometer that predicts unemployment was reported to have decreased by 0.6 points to 97.5 points.
The IAB’s European Labor Market Barometer decreased 1 point to 99.7 points in August.
It should be noted that for the first time this year the barometer fell below the neutral level of 100 points.
Enzo Weber, head of the IAB’s Department of Forecasting and Macroeconomic Analysis, states in his assessment of this: “The economic downturn has taken its toll on Germany and is now also leaving its mark on the labor market.”
Noting that European labor markets have long performed well in times of economic crisis, Weber said: “But now is the time for an economic transformation.”
THE ECONOMY IS NOT GROWING
According to data from the Federal Statistical Office (Destatis), the German economy, the largest in Europe and the fourth in the world, contracted 0.4 percent in the last quarter and 0.1 percent in the first quarter of the year. year, but failed to grow in the second quarter of the year.
While many crises such as the Covid-19 epidemic, supply chain disruptions, and the war between Russia and Ukraine in recent years have brought weaknesses in the German economy to the surface, the fact that many countries, especially China can produce more and more imported goods from Germany and interest rates rise with high inflation, making it difficult for the German economy to grow.
Slowing global growth, falling industrial production and consumer efforts to cope with rising inflation are also negatively affecting the German economy. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
