According to data released on Wednesday by the Labour Office, Germany’s jobless rate remained constant in February amid a difficult economic climate characterized by rising input costs and supply chain limitations.
According to the Federal Labour Office, in seasonally adjusted terms, the number of unemployed individuals increased by 2,062 to 2.509 million. The Federal Employment Agency’s chair, Andrea Nahles, noted that although the unemployment rate increased marginally in February, the labor market remained robust overall.
At 5.5%, the seasonally adjusted unemployment rate did not change. The Ifo institute’s most recent poll indicates that 43.6% of German businesses are struggling with a labor shortage. The number of unemployed increased by 4,000 from January to February in non-adjusted figures, bringing the overall number to 2.62 million. In non-adjusted terms, the unemployment rate stayed constant at 5.7%.
In February 2023, there were 192,000 more unemployed people than in the same month in the previous year. According to the employment bureau, if not for the Ukrainian refugees who have fled to Germany since the Russian invasion, unemployment would have increased somewhat year over year.
Because businesses retain their employees despite the fact that it is challenging to fill vacancies, the number of layoffs is at an all-time low. According to Carsten Brzeski, global head of macro at ING, the labor market’s resiliency will progressively wane. He observes a gradual decline after the peak performance in September and October of last year, which is reflected in mild increases in layoffs and temporary employees.
Germany’s gas bill increased by 109% in spite of reduced purchasing last year
Despite a 30% decrease in volume, the cost of importing natural gas to Germany more than doubled in 2022, according to figures from the Federal Office for Economic Affairs and Export Control (BAFA).
Following Moscow’s invasion of Ukraine in February of last year, energy costs rose sharply, leading Germany to look for alternatives to Russian supply while enacting restrictions on usage.
According to BAFA figures, Germany’s import bill climbed from 35.4 billion euros a year earlier to 74.0 billion euros ($78.74 billion).
Import volumes decreased from 5,008,943 TJ a year earlier to 3,524,126 TJ, or 100.2 billion cubic meters (bcm). The average cost per terajoule paid at the border increased 197.3% to 21,007.58 euros.
The average import price in December was 26,050.71 euros/TJ, or 9.38 cents per kilowatt hour (kWh), a 74% increase over the same month last year. In August of last year, the Nord Stream I pipeline from Russia was decommissioned, causing Germany to explore other possibilities for obtaining energy other than Russia.
In response, Germany increased its purchases of piped gas from its neighbors in Europe and sought imports of liquefied natural gas (LNG), although the mild weather served to restrain demand. But, price increases and supply issues in Germany have fueled inflation and sparked worries about a recession in the continent’s largest economy.
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