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MIL OSI Translation. Region: Germany / Deutschland –

Source: Destatis Federal Statistical Office

Employment decline is weakening

Press release No. 457 from November 17, 2020

Employed persons working in Germany, 3rd quarter 2020: -0.1% on the previous quarter (seasonally adjusted) +0.1% on the previous quarter (not seasonally adjusted) -1.4% on the same quarter of the previous year

WIESBADEN – In the 3rd quarter of 2020, around 44.7 million people who work in Germany were gainfully employed. According to preliminary calculations by the Federal Statistical Office (Destatis), the number of people in employment fell by a seasonally adjusted 48,000 or 0.1% compared with the 2nd quarter of 2020. The decline in employment after the extraordinarily sharp decline in the 2nd quarter of 2020 (-627,000 people; -1.4%) has thus weakened significantly. Compared to the fourth quarter of 2019, the quarter before the restrictions caused by the corona pandemic in Germany, the number of people in employment fell by 1.5% or 688,000 people in the third quarter of 2020, seasonally adjusted.

Cannot load diagram

Without seasonal adjustment, the number of people in employment rose by 66,000 or 0.1% compared with the previous quarter. The number of people in employment usually increases in the third quarter of a year. In the course of the corona pandemic, however, the growth this year is significantly weaker than the average for the last five years in a third quarter (+240,000 people; + 0.5%).

Employment decreased by 1.4% compared to the same quarter of the previous year

Compared with the third quarter of 2019, the number of people in employment fell by 1.4% (654,000 people). In the 2nd quarter of 2020, the previous year’s rate of change was -1.3%. In the previous quarters, the number of employees had increased.

It should be noted that the measures to contain the corona pandemic also lead to increased uncertainty when estimating the number of persons in employment. However, the massive increase in short-time working does not affect the number of persons in employment, as short-time working, regardless of the extent of short-time working, is included in the employment accounting concept and not as unemployed.

Service sectors again with the greatest decline

In the third quarter of 2020, the service sectors mainly contributed to the decline in the total number of persons in employment compared to the same quarter of the previous year (-419,000 people; -1.2%). The largest absolute employment losses were recorded in the trade, transport and hospitality sector with -260,000 people (-2.5%) as well as corporate service providers, which also include the placement and leasing of labor (-190,000 people; -3.1%) ). The number of people in employment also fell sharply in other services (-90,000 people; -3.0%), while the downward trend that had existed for years among financial and insurance service providers continued (-14,000 people; -1, 3%). In contrast, employment gains were recorded in public service providers, education, health with +129,000 people (+1.1%), as well as in the information and communication sector (+10,000 people; +0.7%).

In the manufacturing industry (excluding construction), the decline in the number of people in employment continued at an increased rate in the third quarter of 2020 compared to the previous year (-236,000 people; -2.8%). In the construction industry, however, employment gains continued to be achieved (+21,000 people; +0.8%). In agriculture, forestry and fishing, the number of people in employment fell by 20,000 people (-3.2%).

Fewer employees, fewer self-employed

Almost three quarters of the decline in employment is due to the falling number of employees, which fell by 486,000 (-1.2%) to 40.74 million in the third quarter of 2020 compared to the third quarter of 2019 . This development was based both on declines in the number of employees subject to social security contributions and those in exclusively marginal jobs (low-paid and short-term employees and people in employment opportunities). The decline in self-employed activity continued in the third quarter of 2020: The number of self-employed including family workers fell by 168,000 people (-4.1%) to 3.98 million compared to the same quarter of the previous year.

Volume of work drops by 4.0%

According to preliminary calculations by the Institute for Employment Research (IAB) of the Federal Employment Agency, the average number of hours worked per employed person decreased by 2.6% to 344.9 hours in the third quarter of 2020 compared to the same quarter of the previous year. The total economic volume of work – i.e. the product of the number of persons in employment and hours worked per person in employment – fell by 4.0% to 15.4 billion hours in the same period. This particularly shows the effect of using short-time working from the second half of March, which is not reflected in the number of gainfully employed people, but in the number of hours worked.

Employment figures in the EU

According to data from the European statistical office Eurostat dated November 13, 2020, employment fell more sharply in the third quarter of 2020 in the 27 countries of the European Union (EU) and in the euro area compared to the same quarter of the previous year than in Germany. The decrease was 1.8% in the EU and 2.0% in the euro area.

Note on the results published so far

In addition to the initial calculation of the number of persons in employment and the hours worked for the 3rd quarter of 2020, the previously published results from the 1st quarter of 2020 were also recalculated as part of the regular revision of the national accounts. The recalculation does not result in any changes in the previous year’s rates of change for the quarterly employment figures.

Employed hours and hours worked
Year, quarter 1
Employed 2
hours worked 3
All in all
Employees
Self-standing 5
All in all
per employed person
seasonally adjusted value 4
Original value
People in 1,000
Millions of hours
Hours
1 For employed persons: annual or quarterly averages. 2 Results of the employment accounts within the framework of the national accounts; Employed persons who work in Germany (domestic concept). 3 Source: Institute for Employment Research (IAB) of the Federal Employment Agency, Nuremberg. 4 Seasonal adjustment according to X13-ARIMA under JDemetra +. 5 Including family workers. Q = quarter
2017

44 262
39 989
4,273
61 483
1,389.1
2018

44 868
40 645
4 223
62 229
1,386.9
2019

45 269
41 117
4 152
62 596
1,382.8
2017
Q1
44 023
43 732
39 438
4 294
15 675
358.4
Q2
44 185
44 166
39 892
4,274
14 496
328.2
Q3
44 351
44 450
40 179
4 271
15 725
353.8
Q4
44 494
44 699
40 448
4 251
15 587
348.7
2018
Q1
44 675
44 398
40 156
4 242
15 687
353.3
Q2
44 814
44 790
40 563
4 227
14 814
330.7
Q3
44 938
45 028
40 804
4 224
15 888
352.8
Q4
45 052
45 257
41 055
4 202
15 841
350.0
2019
Q1
45 183
44 920
40 733
4 187
15 978
355.7
Q2
45 271
45 240
41 077
4 163
14 750
326.0
Q3
45 292
45 376
41 229
4 147
16 074
354.2
Q4
45 332
45 538
41 429
4 109
15 795
346.8
2020
Q1
45 319
45 066
40 991
4,075
15 717
348.8
Q2
44 692
44 656
40 633
4 023
13 437
300.9
Q3
44 644
44 722
40 743
3,979
15 425
344.9

Change compared to the previous quarter in%
Change compared to the corresponding period of the previous year in%
2017

1.4
1.7
-1.6
0.9
-0.5
2018

1.4
1.6
-1.2
1.2
-0.2
2019

0.9
1.2
-1.7
0.6
-0.3
2017
Q1
0.3
1.4
1.7
-1.7
2.5
1.0
Q2
0.4
1.4
1.7
-1.7
-0.5
-1.8
Q3
0.4
1.4
1.7
-1.6
0.8
-0.5
Q4
0.3
1.4
1.7
-1.4
0.7
-0.7
2018
Q1
0.4
1.5
1.8
-1.2
0.1
-1.4
Q2
0.3
1.4
1.7
-1.1
2.2
0.8
Q3
0.3
1.3
1.6
-1.1
1.0
-0.3
Q4
0.3
1.2
1.5
-1.2
1.6
0.4
2019
Q1
0.3
1.2
1.4
-1.3
1.9
0.7
Q2
0.2
1.0
1.3
-1.5
-0.4
-1.4
Q3
0.0
0.8
1.0
-1.8
1.2
0.4
Q4
0.1
0.6
0.9
-2.2
-0.3
-0.9
2020
Q1
0.0
0.3
0.6
-2.7
-1.6
-1.9
Q2
-1.4
-1.3
-1.1
-3.4
-8.9
-7.7
Q3
-0.1
-1.4
-1.2
-4.1
-4.0
-2.6
Employed persons with place of work in Germany by economic sector 1
Economic sector 2
2019
2019
2020
Q1
Q2
Q3
Q4
Q1
Q2
Q3
1 Results of the employment accounts within the framework of the national accounts (domestic concept); annual and quarterly averages. 2 Classification of economic sectors, edition 2008 (WZ 2008) .Q = quarter
People in 1000

Agriculture, forestry, fishing
599
566
638
619
573
555
619
599
Manufacturing industry excluding construction
8 360
8 350
8 356
8 382
8 361
8 254
8 176
8 146
including:

Manufacturing
7 758
7 754
7 754
7 776
7 749
7 622
7 546
7 513
construction industry
2 552
2,504
2 544
2 569
2 583
2 540
2 561
2,590
Trade, transport, hospitality
10 257
10 160
10 247
10 284
10 317
10 169
9 967
10 024
information and communication
1 375
1 360
1,370
1,380
1 393
1 394
1 388
1,390
Financial and insurance service providers
1 096
1 098
1 093
1 097
1 101
1 091
1 084
1 083
Real estate and housing
481
478
481
482
482
480
479
478
Corporate service provider
6 201
6 167
6 193
6 227
6 227
6 136
6 023
6 037
Public service providers, education, health
11 313
11 224
11 269
11 290
11 462
11 451
11 410
11 419
Other service providers
3 035
3 013
3 049
3 046
3 039
2,996
2,949
2 956
Change compared to the corresponding period of the previous year in%

Agriculture, forestry, fishing
-1.5
-0.7
-2.3
-1.4
-1.5
-1.9
-3.0
-3.2
Manufacturing industry excluding construction
0.6
1.4
1.1
0.4
-0.4
-1.1
-2.2
-2.8
including:

Manufacturing
0.5
1.4
1.0
0.3
-0.6
-1.7
-2.7
-3.4
construction industry
1.5
1.7
1.5
1.1
1.1
1.4
0.7
0.8
Trade, transport, hospitality
0.8
1.1
0.8
0.5
0.4
0.1
-2.7
-2.5
information and communication
3.7
4.2
3.9
3.8
3.0
2.5
1.3
0.7
Financial and insurance service providers
-1.2
-1.3
-1.2
-0.8
-0.7
-0.6
-0.8
-1.3
Real estate and housing
0.8
1.1
1.3
0.8
0.2
0.4
-0.4
-0.8
Corporate service provider
-0.4
0.1
-0.4
-0.7
-0.5
-0.5
-2.7
-3.1
Public service providers, education, health
1.9
1.6
1.8
1.9
2.0
2.0
1.3
1.1
Other service providers
0.8
0.9
1.1
1.0
0.5
-0.6
-3.3
-3.0

Detailed results and long time series on the workforce for Germany can be found in the GENESIS-Online database via the VGR tables of the federal government (81000-0012 and 81000-0016) and Labor market (13321) can be accessed.

Methodological notes In all reports on economic indicators, the different comparison periods must be observed. The focus of the economic observation is the comparison with the previous month / quarter. The short-term trend in economic development can be read from this. The comparison with the previous year serves as a long-term level comparison and is independent of seasonal fluctuations. In the current Corona crisis, the strong declines, especially in March / April 2020 and the recovery that has been slowly returning since then, can lead to very different results compared to the previous month / quarter and the previous year. Both perspectives are important: How is the economic trend compared to the previous month / previous quarter, and how far is the catching-up process compared to the previous year’s level? In order to also enable a direct comparison to the pre-crisis level, a comparison to February 2020 and the 4th quarter of 2019 will be shown in all press releases on economic indicators that are available seasonally adjusted.

German EU Council Presidency in the field of statistics The Federal Statistical Office is in charge of the EU Council Presidency under the chairmanship of President Dr. Georg Thiel the Council Working Group on Statistics. We provide information about our activities during the EU Council Presidency on the special page www.destatis.de/eu2020.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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