Unemployment is rising: Government must act now!

Unemployment is rising: Government must act now!

The situation on the labor market is getting worse: unemployment figures are rising and show the ongoing consequences of the corona pandemic. As ÖGB Federal Managing Director Helene Schuberth stated, it is essential that the new federal government invests immediately in the labor market. "The measures in the government program are necessary to counteract the increasing number of unemployed people. We urgently need more funds for advice, qualifications and short-time work," emphasizes Schuberth. These are important impulses that should give both employees and companies security. According to the Federal Employment Agency, the average number of unemployed people in Germany rose dramatically in 2020 to 2,695,000 people, an increase of 429,000 compared to the previous year.

“The stabilizing effect of short-time work has secured many jobs, but the pressure remains great,” explained Detlef Scheele, CEO of the Federal Employment Agency. Service companies, such as the hotel and catering industry, are particularly affected by the challenges, with 6 million people taking short-time work as a result of the lockdown. Although the labor market was able to partially recover over the course of the year, the underemployment of 3,519,000 people remains a severe setback. This also includes people in labor market policy measures or short-term illness actions.

Call for immediate action

The ÖGB is therefore calling for rapid and targeted skilled workers offensives and a new concept for the long-term unemployed, who are to be supported by the “55Plus” project. Schuberth is calling for the government to step up its pace and sees the measures already outlined as first steps: “It won’t work without targeted initiatives,” she clarifies. Labor market developments are a critical challenge, exacerbated by the ongoing economic effects of the pandemic employment agency.de holds on. Labor market events are of key importance and require urgent responses to prevent further damage and enable a sustainable return to a stable working environment.