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More unemployed in Saxony in October for the first time in 30 years - also increase in Leipzig

The gloomy outlook for many companies in Saxony has consequences for the labor market. It normally shows an upturn in October. But not this year.

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Man sieht Menschen vor der Agentur für Arbeit
The poor mood in large parts of the economy is having an impact on Saxony's labor market. (symbolic image) Source: Arne Dedert/dpa

German Press Agency dpa

Dresden/Chemnitz. The poor mood in large parts of the economy is having an impact on Saxony's labor market. According to the regional directorate of the Federal Employment Agency in Chemnitz, unemployment rose in October for the first time in over 30 years. The uncertain economic situation and economic risks are having a noticeable impact on the labor market - so much so that long-standing trends are now being interrupted, stated the head of the regional directorate, Klaus-Peter Hansen. According to the latest figures from the Ifo Institute, there is no sign of a change in sentiment among companies.

Overall, the number of unemployed people in Saxony rose by 329 to around 139,600 in October compared to the previous month. A year ago, around 9,000 fewer men and women were unemployed in the state. The unemployment rate was reported at 6.5 percent, compared to 6.2 percent a year ago. "The fall revival is failing," explained Hansen with a view to the latest figures. The employment agency based its statistics on data available up to October 14.

DGB state head: "Alarm signal"

According to the regional directorate, many companies are reluctant to take on new staff, particularly in cyclical sectors. At the same time, the number of people registering as unemployed has risen. Saxony's DGB boss Markus Schlimbach spoke of an alarm signal. He called on the federal government to invest in measures to qualify the unemployed. He emphasized that cuts to the budget of the Federal Employment Agency would be poison in the face of growing unemployment.

According to an analysis by the Ifo Institute in Dresden, the mood in the eastern German economy remains unchanged at a low level. The business climate index stagnated at 88.3 points in October. The companies surveyed assessed their business situation slightly better than in the previous month, while business expectations were slightly less favorable than in September. The Ifo Business Climate East Germany is based on around 1700 reports from companies. Every month, companies are asked about their current business situation and their expectations for the next six months.

Highest increase in unemployment in the Zwickau district

According to the regional directorate, there has recently been an increase in employment in care homes and social services, healthcare and public administration. Significant declines were reported in the manufacturing industry, temporary employment and the construction industry.

Unemployment trends varied from region to region. While fewer unemployed people were registered in the districts of Sächsische Schweiz-Osterzgebirge (-1.6 percent), Görlitz (-1.5 percent) and Vogtland (-1.4 percent) in particular, their numbers rose in the district of Zwickau (+4.1 percent) and the cities of Leipzig (+1.8 percent) and Chemnitz (+1.0 percent). Statewide, the unemployment rate was lowest in the districts of Erzgebirge and Sächsische Schweiz-Osterzgebirge at 5.1 percent each, and highest in Chemnitz at 9.0 percent.

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