By Andreas Plecko
NUREMBERG (Dow Jones) — The IAB labor market barometer fell in June for the third time in a row. The decline was 0.7 points to 101.0 points. The leading indicator of the Institute for Labor Market and Occupational Research (IAB) thus remained above the neutral mark of 100 and shows “overall still a positive development” for the German labor market, as the IAB announced. The European barometer also recorded 101.0 points after the second decline in a row, a drop of 0.6 points.
“Thus, the barometer values for Germany and Europe are now overall at the same level – the labor market outlook in Germany, which was usually better in the past, has now deteriorated to the European mediocrity,” explained the IAB.
In Germany, the component for forecasting unemployment fell for the fourth time in a row in June and now stands at 97.9 points after a minus of 0.2 points. The component predicting employment falls more sharply in June by 1.1 points but still remains on good terms at 104.2 points.
“There is a good chance that more and more immigrants from the Ukraine will fill vacancies in Germany. But initially, looking for a job often means unemployment,” explained Enzo Weber, head of the IAB research department. The economic consequences of the energy crisis are tough and would weigh on the development of the labor market.
The European Labor Market Barometer has fallen for the second time in a row and is currently at 101.0 points after falling by 0.6 points. The unemployment component falls 0.3 points to 99.5 points, signaling slightly rising unemployment. The employment component falls by 0.8 points, but remains in positive territory at 102.6 points, even at the European level.
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(END) Dow Jones Newswires
June 28, 2023 03:55 ET (07:55 GMT)