Unemployment in Saxony will continue to rise in the coming weeks

From George Moeritz

Dresden. Unemployment in Saxony has risen and will continue to rise in the coming weeks. Klaus-Peter Hansen, head of the Saxony regional directorate of the Federal Employment Agency, said on Wednesday in Chemnitz: "The economy is suffering." In July, more than 10,000 people in Saxony registered as unemployed who were previously employed. According to Hansen, this is "significantly more than normal" at this time of year. He does not expect unemployment to fall until the hoped-for "fall revival". Hansen had predicted at the beginning of the year, that the unemployment rate in Saxony will rise above seven percent this year.

Significantly more men than women registered as unemployed

In July, the unemployment rate in Saxony rose to 6.6 percent. A year earlier, it was 6.2. 141,501 people are now registered as unemployed in Saxony. In July alone, 4,716 people were added as a balance of those joining and leaving the workforce, and the number has risen by 9,826 compared to July last year. A look at Hansen's tables shows that male unemployment in particular has increased year-on-year. More than 55 percent of unemployed Saxons are men. The number of foreign unemployed in Saxony was 36,000 in July.

Three reasons for increased unemployment

Hansen cited three reasons for the rise in unemployment: Firstly, many young people always register with the job centers at this time of year because they are looking for training or their first job. Secondly, the economy is not growing; according to the latest figures, gross domestic product in Germany shrank by 0.1 percent in the last quarter. Thirdly, in the summer, not only are entrepreneurs and personnel managers on vacation and offering fewer jobs, but the employment authorities are also organizing fewer training and employment programmes.

Saxon companies register 6,200 vacancies in July

There are more than 35,000 vacancies on the computers of employment agencies and job centers. Most of them are permanent and full-time, the authorities emphasized. In July alone, more than 6,200 new jobs were registered. Hansen sees this as proof "that companies want to continue hiring employees despite the economic risks". Skilled workers in particular are in demand. On the one hand, Hansen expressed concern because "fewer and fewer jobs" were being reported. On the other hand, there was an increase in July compared to the previous month.

Highest unemployment rate in Chemnitz

There are large differences within Saxony, but unemployment rose everywhere in July. According to Hansen, the strongest growth was in Dresden and in the neighboring district of Sächsische Schweiz-Osterzgebirge as well as in Zwickau. In Dresden, the unemployment rate is slightly above average at 6.8 percent. It is higher in Leipzig at 7.7 percent and in Chemnitz at 9.0 percent. Hansen explained the fact that Chemnitz has the worst figure with the high proportion of industry, among other things. There are also many foreigners there, and many commuters compete with the residents for jobs. According to Hansen, the unemployment rate in the Sächsische Schweiz-Osterzgebirge and Erzgebirgskreis districts is comparatively low at 5.3 percent.

Growth in service providers, cutbacks in construction and industry

According to Hansen, employment in Saxony remains at a high level: according to the latest figures for May, 1.64 million people are employed with social insurance. Compared to the low in May 2005, this is 309,000 more. However, the number of employees has fallen by 2,500 in the last year. Industry cut 6,100 jobs, temporary work followed with 3,000, and 2,300 jobs were lost in construction. The winning sectors in Saxony, on the other hand, are services, including healthcare, gastronomy, transport and warehousing.

DGB: Saxony has too much youth unemployment

The German Trade Union Confederation (DGB) in Saxony drew attention to the rising unemployment among young people. Chairman Markus Schlimbach said that young people had been finding it harder to get a job for months. Despite demographic problems and a shortage of skilled workers, Saxony has a youth unemployment rate of 7.4 percent. The number of unemployed has been rising again since the beginning of the year. This is also a consequence of the lack of investment. Both the federal government and the state of Saxony are cutting back on necessary investments. Saxony's state government should not just point accusingly at Berlin, but must invest itself. To this end, the debt brake must be reformed.