Employment agency in Hessen does not expect an increase in unemployment

Fewer people registered as unemployed in Hesse in October than in the previous month. However, things are sluggish in the training market. Meanwhile, the inflation rate continues to fall.

Declining: The Hessian employment agency recorded declining numbers.  (Symbol image)

VBefore the second part lockdown in the corona pandemic, the number of unemployed in Hesse fell again. As of the October cut-off date, 193,972 men and women were registered as unemployed, as the regional directorate of the employment agency announced on Thursday. That was around 6,800 fewer than in September and just under 47,500 more than a year earlier. The rate fell from the previous month by 0.2 points to 5.6 percent. The apprenticeship market was sluggish, with every tenth position remaining vacant and more young people initially left unsupported.

Director Frank Martin expects further burdens from the now planned restrictions on public life. The advertisements for short-time work, especially from the hospitality and cultural sectors, are likely to rise again, he said.

The fact that schools and kindergartens are not generally closed is positive. A sustained, cross-sector rise in unemployment is not to be expected at first if the new restrictions expire as planned at the end of the month.

Heating oil and fuel depress inflation

The inflation rate in Hesse fell again in October. As the State Statistical Office announced on Thursday in Wiesbaden, consumer prices were 0.6 percent below the level of the same month last year. Significantly lower prices for heating oil and fuels as well as for clothing made a major contribution to this. In September, the value was 0.5 percent below the previous year, also due to the reduction in VAT.

In August, the annual inflation rate was minus 0.3 percent. Compared with September, the level of consumer prices remained unchanged, according to statisticians. According to the state office, consumers had to spend 8.6 percent less on energy. In particular, heating oil (minus 37.1 percent) and fuels (minus 12.7) have become cheaper year-on-year. The decline in the cost of natural gas (minus 3.7) and electricity (minus 0.8) was less pronounced. Without taking into account the prices for energy products, the inflation rate in October would have been 0.4 percent. The prices for food, however, have risen by 0.7 percent year-on-year, said the authority. Meat and meat products cost 3.0 percent more. Consumers also had to dig deeper into their pockets for vegetables (plus 2.0 percent) and fruit (plus 1.6 percent).

According to statisticians, the prices for clothing items fell by 4.1 percent. In order to give the German economy a boost in the Corona crisis, the federal government temporarily lowered the value added tax from the beginning of July until the end of the year. Retailers and service providers are free to choose whether to pass the lower VAT on to consumers.