By Andreas Plecko
NUREMBERG (Dow Jones) — The IAB labor market barometer rose in February for the fourth time in a row. The leading indicator of the Institute for Employment Research (IAB) increased by 0.4 points to 103.3 points. The index is thus well above the neutral mark of 100 and indicates a positive development in the German labor market.
“Employment agencies are looking to the future with increasing optimism,” said Enzo Weber, head of the IAB research department. “The labor market prospects in Germany continue to brighten.”
The employment component of the labor market barometer increased slightly by 0.1 points in February. This puts it at 104.9 points, which continues to signal strong growth in employment.
On the other hand, the component for predicting unemployment rose significantly by 0.8 points to 101.8 points, signaling a decline in unemployment.
“Due to the registration of Ukrainian refugees, unemployment temporarily rose last year, but with increasing integration into work, things are now increasingly going in the opposite direction,” Weber explained.
There was a trend reversal in the European Labor Market Barometer. It stood at 101.1 points in February after the second consecutive rise – an increase of 0.6 points compared to the previous month. “Since the beginning of the year, the prospects for the European job markets have clearly improved,” said Weber. Nevertheless, the positive expectations in Germany are currently ahead of those in Europe. In the event of a further geopolitical escalation, however, there would be considerable risks for all countries.
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DJG/apo/sha
(END) Dow Jones Newswires
February 27, 2023 05:20 ET (10:20 GMT)