Unemployment in Saxony Continues to Rise

Unemployment in the German state of Saxony continued its upward trend in August, reaching approximately 157,000 registered jobless individuals. This marks an increase of about 2,000 people compared to the previous month, pushing the unemployment rate to 7.3 percent from 7.2 percent in July.

The rise is attributed partly to seasonal factors, with many young people entering the job market after completing their education or training. However, Klaus-Peter Hansen, head of the regional directorate of the Federal Employment Agency, noted that more people lost jobs than found new employment. He cited ongoing economic uncertainties as a reason for businesses' cautious approach to hiring.

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The increase in unemployment in August is quite usual for the season and not initially unusual.

The figures reveal regional disparities, with Chemnitz again recording the highest unemployment rate at 10.4 percent. Leipzig followed with 9.3 percent, and the Görlitz district with 8.8 percent. Conversely, the Sächsische Schweiz-Osterzgebirge and Erzgebirgskreis districts reported the lowest rates at 5.6 percent and 5.8 percent, respectively.

Sector-specific data for June shows mixed employment trends. The healthcare sector added around 3,100 jobs, with gains also seen in social services and real estate. In contrast, the manufacturing industry shed approximately 9,600 jobs, and the retail sector lost 3,800 positions. Currently, about 1.61 million people in Saxony are employed in jobs subject to social security contributions.

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Given the economic uncertainties, the willingness of Saxon companies to hire remains subdued.