The employment barometer of the Institute for Employment Research (IAB) has turned negative: the employment component has fallen below the value of 100, signaling an unfavorable development. At the same time, the unemployment component is catching up and is now almost on par. “Demographic shrinkage has finally arrived on the labor market,” said IAB researcher Enzo Weber when presenting the barometer.
The barometer is based on the forecasts of all German employment agencies for the next three months. Until now, the comparatively favorable employment situation had made the overall outlook appear more positive. But now several factors are weighing in: years of economic weakness, the consequences of geopolitical conflicts, declining migration, and a shrinking labor force potential. “Years of economic weakness, the economic consequences of geopolitical conflicts, declining migration, and the shrinking labor force potential are putting pressure on employment from various sides,” Weber said.
At its core, this means: the baby boomer generation, born during the post-war baby boom, is retiring, and not enough young workers are coming in. Vacancies cannot be filled, and overall employment is declining.
Source: www.tagesspiegel.de
