Experts: job recovery continues to lose momentum

Experts: job recovery continues to lose momentum

Many companies continue to be unsettled by the euro debt crisis and are making investments that will also create new jobs. Accordingly, the job upswing had weakened further in august. According to calculations by experts, 2.906 million men and women were out of work during the vacation month; this was around 15,000 more than in july and only 40,000 less than a year ago. The official figures will be published by the bundesagentur fur arbeit (BA) on 30. August announce.

The main reason for the increase was the summer break, emphasized the experts interviewed by dpa. Especially in baden-wurttemberg and bavaria, many companies were still on vacation in august; most of the new employees were not hired until september. Many young people had not yet found a new job after completing their training and continued to register as unemployed.

Nevertheless, according to their assessment, the labor market developed worse than in the midsummer of the past five years: from 2007 to 2011, the number of unemployed people had fallen by an average of just under 3,000 in august. "We are facing a poor third quarter economically. This development is spreading relatively quickly to the labor market," says commerzbank economist eckart tuchtfeld.

According to allianz economist rolf schneider, the job market must also prepare for somewhat difficult times. Unlike some of his colleagues, he still expects slight economic growth in the third quarter of 2012. "The situation is nevertheless risky, the utilization of the industry decreases and also the investment activity sinks." During this time, hardly any new jobs were created, especially in industry.

However, everyone is counting on the debt crisis not escalating and the euro zone not breaking apart. Then the situation on the labor market could improve again as early as late fall. For 2012, experts expect an average unemployment rate of about 2.88 million – about 100,000 less than the year before. In 2013, according to the experts’ forecasts, the number could drop by another 50,000 to 2.82 million on an annual average.

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