Germany Unemployment

There are different methods for recording unemployment figures, each of which leads to different definitions of unemployed. They differ in terms of data collection, job search methods and the definition of marginally employed.

The ILO employment statistics of the Federal Statistical Office implement the internationally recognized and applied criteria formulated by the International Labour Organization (ILO) for the differentiation of persons according to their employment status. The source of the unemployment data is the Labour Force Survey, which in Germany is integrated into the Microcensus, a monthly survey of 35,000 persons. The figures according to the Social Code of Germany (Sozialgesetzbuch von Deutschland, SGB) are obtained from the business data of the employment agencies and the job centers. According to these regulations, a person is unemployed or active if he or she is registered by the relevant authorities. As of January 2007, the unemployment data collected or transmitted in the separate procedures are merged in the BA statistics in such a way that the individual episodes of unemployment and job search develop without overlapping and in a consistent manner.

The unemployment figure shows by how much the number of unemployed has changed compared to the same month of the previous year.

Labour market figures are among the most important economic indicators. However, they lag the economic development by a few months, so they confirm a development rather than indicate it. Nevertheless, a decline in the unemployment rate can have a positive impact on the euro.