German unemployment figure for April to reveal toll of pandemic

Germany’s Federal Employment Agency is to release unemployment data for April on Thursday, reflecting for the first time the impact the coronavirus has had on the country’s labour market.

The unemployment rate fell slightly in March to 5.1 per cent, although that figure was based on data from the first half of the month and did not take into account the sweeping closures and restrictions introduced in Germany six weeks ago.

Heavy losses are expected this month, after the Federal Employment Agency’s own research institute said its employment index had suffered an “unprecedented” decline in April, falling to 93.5 points.

The Institute for Employment Research’s employment barometer is based on surveys of the government agency’s offices nationwide. It is measured on a scale of 90 (very negative outlook) to 110 (very positive outlook).

The Ifo research institute also reported that its employment index had fallen to a historic low in April, plummeting to 86.3 points.

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“The labour market is coming under intense pressure,” the government said in its spring forecast on Wednesday.

The Federal Employment Agency is also expected to give details on Thursday on the government’s short-time work scheme, a programme covering workers’ salaries for companies in a bid to avoid mass lay-offs. (dpa)