The outlook for the German labor market shows little dynamism. “The labor market outlook has largely been stagnating for a year. Economic stimulus would be important,” said Enzo Weber of the Institute for Employment Research (IAB) according to the statement. The IAB leading indicator increased 0.3 points compared to June, reaching 100.4 points and thus in slightly positive territory.

For the labor market barometer, the institute surveys all German employment agencies every month about their forecasts for the next three months. 90 points represent a very poor development, 110 a very good one. The barometer also shows the components for predicting unemployment and employment individually.

The employment component improved slightly in July. Compared to June, it rose by 0.2 points to 102.5 points. The unemployment component increased by 0.5 points to 98.3 points. “Unemployment could rise somewhat more slowly, but it is not enough for a trend reversal at the moment,” commented Weber. The Federal Employment Agency will present its current statistics on Wednesday (July 31).