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Germany – Temporary staffing shows “positive developments”

03 May 2012

Germany’s Labour Minister, Ursula von der Leyen, has said that the labour market continues to be “robust” and she does not expect an end to the German ‘job miracle’. She said, in particular, that temporary employment is showing “positive developments”.

“Although for some time about one third of new jobs are attributed to temporary work, the absolute number of temporary workers in the latest rating of February 2012 lies at around 750,000, which is significantly lower than experts expected, and remains at about the same level as in spring 2011,” Mrs Von der Leyen argued.

“The temporary staffing industry is hiring, but people are also constantly taken over by staffing buyers. In total, the proportion of temporary employment regarding total employment subjected to social contributions lies at 2.6%.”

Although most newspaper have reported a decrease in unemployment in Europe’s economic powerhouse, seasonally adjusted joblessness in Germany actually rose in the month of April as the European debt crisis continues to constrain growth across the continent. The Labour Agency in the country said that seasonally adjusted figures for the number of people out of work rose by 19,000 to 2.87 million in the month of April, resulting in an unemployment rate of 6.8%.

Experts were surprised at these results as demand for labour has also dropped recently. According to the latest barometer, companies are cautious about their hiring plans because uncertainty remains over the debt crisis. But Frank-Jürgen Weise, head of the Labour Agency, spoke of a “good development” and said a slight decrease in employment was only natural.

The non-seasonally adjusted jobless rate in Germany dropped from 7.2% in March to 7% in April. Yesterday official statistics showed unemployment in the EU countries remained “stable” at 10.2% in March 2012 but showed a record high in the Eurozone. 

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