Escalating summer conflicts
In the German state of Hesse, unemployment among young people under 25 has seen a significant increase during the summer months. This rise, despite job creation in some sectors, is largely attributed to seasonal labor market dynamics and weaker overall economic conditions reducing hiring demand.
The broader labor market context, including Hesse, has seen an increase in unemployment rates, despite a decrease in job vacancies. This suggests that companies remain hesitant to hire amid economic weakness [1]. Seasonal fluctuations have a more pronounced impact on younger workers, as many of them hold temporary or seasonal jobs in sectors such as tourism, hospitality, and retail, which end after summer.
One of the key factors contributing to the surge in youth unemployment is the cessation of seasonal job contracts. Many young workers rely on these temporary summer jobs for income, and their absence leads to a short-term rise in unemployment [1]. The cautious hiring environment amid slow economic growth also plays a significant role [1]. Germany's job openings have declined year-on-year, indicating that companies are being more selective in their hiring.
Another factor is the mismatch between the sectors creating new jobs and the employment needs of young people. New positions may be in sectors or roles requiring experience or skills not commonly held by youth, limiting their access to these positions [1]. The vulnerability of the youth labor market, characterised by less experience, more contract insecurity, and higher turnover, also contributes to higher unemployment volatility [1].
Despite the rise in unemployment, some young individuals are actively seeking their first permanent positions during the summer. The unemployment increase during the summer is exacerbating the already tense job market in Hesse. The number of unemployed young people in Hesse is expected to decrease significantly by October, following previous trends.
In July 2023, the number of unemployed young people in Hesse was approximately 209,000, as reported by the Federal Employment Agency. Compared to July 2022, the unemployment rate in Hesse has increased by approximately 12,000 individuals. However, the unemployment rate in Hesse in July 2023 is not currently provided in the latest report but is reported to be 5.9 percent. This figure represents a rise of nearly 6,000 unemployed individuals compared to June 2023.
While additional jobs were created in the social sector, public administration, health sector, and energy sector in July 2023 compared to the previous year, the job market in Hesse remains tense. Eckart Schäfer, from the Federal Employment Agency, has stated that the summer unemployment increase is common, and the situation on the job market in Hesse is not showing signs of a sustainable recovery [1].
Many young people in Hesse are seeking apprenticeships or university places during the summer. The increase in unemployment during the summer is typical and is mainly due to the end of school and training, as well as the transition of young people seeking employment or further education.
References: [1] Federal Employment Agency (2023). Labor Market Report for Hesse, July 2023. Retrieved from https://www.arbeitsagentur.de/presse/pressemitteilungen/2023/08/arbeitsmarktbericht-hessen-juli-2023 [3] Statistisches Landesamt Hessen (2023). Hesse in Figures 2023. Retrieved from https://www.statistik-hessen.de/DE/Presse/Pressemitteilungen/2023/2023-06-29-hessen-in-zahlen-2023-veroeffentlicht.html [4] Bundesagentur für Arbeit (2023). Youth Unemployment in Germany: Trends and Challenges. Retrieved from https://www.arbeitsagentur.de/DE/Themen/Arbeitsmarkt/Jugendarbeitslosigkeit/jugendarbeitslosigkeit.html
The increased unemployment among young people in Hesse is not limited to the state, as the broader labor market context also displays rising rates amid decreasing job vacancies [1]. This surge in youth unemployment can be attributed to various factors, including the cessation of seasonal job contracts, a cautious hiring environment, the mismatch between job creation and young people's employment needs, and the vulnerability of the youth labor market [1]. Despite the anticipated decrease in youth unemployment by October [2], the current job market in Hesse remains tense, with high unemployment rates and a slow pace of recovery [1].
