Germany's Labour Market Decline: A Closer Look

Job vacancies in Germany have been declining for two years, indicating an economic slowdown. The third quarter saw vacancies at 1.28 million, a significant drop from 1.98 million two years ago. Germany's unemployment rate is expected to rise with a subdued economic outlook continuing into 2024.

The trend of decreasing job vacancies in Germany has persisted for two years, mirroring the gradual slowdown of the country's economic engine. According to a recent report by the Institute for Employment Research (IAB), the third quarter recorded 1.28 million job vacancies, marking a stark contrast to the high of 1.98 million reported two years prior.

"Compared to the previous year, the labour market has cooled significantly," commented IAB labour market researcher Alexander Kubis. Economic forecasts project that in 2024, Germany will trail behind its G7 peers for the second straight year. The decrease in vacancies from the second quarter was 58,100, and from the third quarter of last year, the drop was even more pronounced at 446,500.

Despite these signs of reduced labour demand, Germany's unemployment rate has remained stable at 6.1% as of November. Nevertheless, with economic prospects looking bleak, the number of unemployed is expected to rise further in the next year, pushing the unemployment rate higher from this year's expected 6.0%.

(With inputs from agencies.)