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Turnaround on Saxony's labor market: employment shrinks

The years of employment growth in Saxony are over, says agency head Klaus-Peter Hansen. Companies are showing uncertainty.

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Man sieht den Briefkasten vom Nieskyer Arbeitsamt und eine Hand, die einen Brief einwirft.
Unemployment in Saxony rose in August. But the forecast is not favorable either. © André Schulze

From George Moeritz

Dresden. Job cuts at temporary employment agencies, in construction and in trade: Saxon companies have kept their workforce as much as possible during the Corona period with short-time allowances, but now some seem to be losing patience. The restraint of the entrepreneurs is clearly noticeable, said on Thursday Klaus-Peter Hansen, head of the regional directorate Saxony of the Federal Employment Agency.

Hansen said, "The situation is turning around." In recent years, he said, the number of employees with social security in Saxony has risen, up to 1.643 million people. But the latest projection for June showed a drop of 300 jobs. "We have to fear that employment will decline in the coming weeks and months," Hansen said.

Unemployment has already been rising for several months. 135,036 people in Saxony were registered as unemployed in mid-August. That is 11,608 more than a year earlier. One contributing factor is that an increasing number of Ukrainians have been allowed to register as unemployed after completing courses in Saxony. 13,161 people from Ukraine are registered as unemployed in Saxony. But 6,300 are in a job with social security as of June, and another 1,400 have a mini-job.

Unemployment rises conspicuously in the city of Chemnitz

The number of unemployed in Saxony grew by 3,361 from July to August. A summer break in the labor market is common, however, because bosses are on vacation and filling fewer jobs. At the same time, however, temporary employment contracts expire, and young people temporarily register as unemployed after school or apprenticeships. Hansen is counting on them being hired after the summer break.

The unemployment rate in Saxony rose by 0.2 points to 6.4 percent in August. It is highest in Chemnitz and in the district of Görlitz: 8.6 percent. Hansen cited reasons for the strong increase in the city of Chemnitz: there is "a very high concentration of war refugees" there. Chemnitz has low rents and vacant apartments. In addition, the former Karl-Marx-Stadt has traditional ties to former Soviet republics.

Union demands training guarantee

At the start of the apprenticeship year, there are still thousands of apprenticeship places available, but also thousands of young people still without a contract. Hansen asked them not to bury their heads in the sand, but to keep in touch with career counselors. It is still possible to enter the current apprenticeship year until the end of October. Saxony Minister of Labor Martin Dulig (SPD) attended a meeting of Saxony's youth job agencies in Radebeul on Thursday. They bundle the counseling and guidance of young people.

From German Trade Union Confederation (DGB) came criticism of the employers: Saxony's DGB head Markus Schlimbach said they had still not got involved in long-term skilled labor recruitment. The shortage of skilled workers is in many cases homemade. Schlimbach called for a training guarantee for all young people in Saxony - and for permanent employment after completion of an apprenticeship.

Commenting on the increased numbers of foreign unemployed, the head of the Saxon DGB said that there was also potential there. Instead of "costly immigration programs," he said, it was first necessary to look at the labor market in Saxony. At a skilled labor summit in April, Saxony's state government Pact to attract international workforce signed. Accordingly, the search appears worthwhile in Vietnam, Egypt, Brazil, a region in India yet to be determined, as well as in states in Central Asia. The Center for Skilled Workers and Good Work Saxony (Zefas) in Chemnitz sought applicants with knowledge of German from Kyrgyzstan. But interest from Saxon companies was low, so many ended up signing contracts in Bavaria.

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