Data provided by the Federal Employment Agency (FEA) showed that in May, the unemployment rate (seasonally adjusted) was 5.9%, remaining unchanged compared to April and confirming economists' forecasts. However, the latest reading was the highest since May 2021.
Meanwhile, the number of unemployed grew by 25 thousand, to 2.762 million people, after an increase of 10 thousand in April. Consensus estimates also suggested an increase of 10 thousand. In annual terms, the number of unemployed rose by 179 thousand in May.
The report also showed that in May, the number of vacancies decreased by 65,000 compared to May 2023, to 702,00 vacancies.
"The spring recovery did not really get going this year. Improvement is still a long time coming," said labor office head Andrea Nahles, adding that due to demographic developments, many well-qualified and experienced skilled workers will continue to leave the labor market in the coming years.