Germany: Employment at record high despite economic downturn

Germany: Employment at record high despite economic downturn

According to a report by www.t-online.de, the economy in Germany is experiencing a slump, although the number of employed people has risen to a new record. In the third quarter, 46.04 million people were employed, which is a historic high. Although there is a threat of recession and gross domestic product shrank by 0.1 percent in the third quarter, employment continues to rise. This could indicate that stagnation has not yet reached the labor market. Nevertheless, ING chief economist Carsten Brzeski assumes that the signs on the labor market are turning as there are fewer vacancies and the unemployment rate is rising slightly.

Despite current employment records and positive growth in the labor market, statistics suggest that growth momentum has slowed. Service providers in particular hired in the summer and recorded the largest absolute employment gains. However, the number of self-employed people is stagnating.

Demographic developments are likely to result in more people leaving the workforce than joining. This could have a long-term impact on the labor market and the economy as demographic changes will affect the availability of workers.

Given this information, the situation described could have long-term implications for the labor market. As the unemployment rate rises slightly and growth momentum slows, it is possible that there will be lower employment growth in the future. This could in turn have an impact on consumption and the overall economy. It therefore remains important to closely monitor the development of the labor market in Germany in order to assess the possible economic consequences and take appropriate measures.