Labor market in Saxony 2024: forecast for unemployment and shortage of skilled workers

Labor market in Saxony 2024: forecast for unemployment and shortage of skilled workers

According to a report from www.mdr.de, a slight increase in unemployment is expected in Saxony in 2024 after a mixed year. This increase is attributed in particular to high energy prices and reluctance to purchase. Nevertheless, companies are still looking for skilled workers.

According to the Federal Employment Agency, a further increase in the number of unemployed people in Saxony is expected in 2024. The number of unemployed is expected to rise by 1,100 to 131,500. This corresponds to an increase of 0.8 percent. The economy is suffering above all from high energy costs and purchasing reluctance, which particularly affects the construction industry, hotels and restaurants, parts of the retail sector and the manufacturing sector. This is leading companies to consider downsizing as they face an uncertain future.

The automotive industry is also particularly affected, especially VW's electric car factory in Zwickau, which is struggling with a slump in sales. Supplier companies and the IG Metall union are also warning of further job cuts and uncertainty for employees. This is also reflected in the additional uncertainty forecast for employees in the automotive industry in Saxony.

In order to get refugees into work more quickly, the Saxon Labor Minister is calling for greater integration into the labor market. The proportion of foreign workers in Saxony is currently just under eight percent. At the same time, the shortage of skilled workers remains a problem for the Saxon economy in the coming years, as 400,000 people are retiring and no young people are coming.

Overall, it is clear that the labor market in Saxony is confronted with challenges that could worsen due to global and national developments. Rising unemployment and uncertainty in various economic sectors are likely to have an impact on the economy as a whole, requiring adaptation in terms of training, digitalization and skills development.