European jobless rate up modestly, Germany mulls stimulus

German Chancellor Angela Merkel and German Finance Minister and Vice-Chancellor Olaf Scholz arrive to address a news conference after coalition meetings over stimulus measures to reboot post-coronavirus economy, at the Chancellery in Berlin, Germany June 3, 2020. (Reuters)
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Updated 04 June 2020

European jobless rate up modestly, Germany mulls stimulus

  • Europe’s rise in unemployment has been moderate by international standards

BERLIN: Europe’s unemployment rate ticked up modestly last month, contained by use of labor programs that have kept millions of workers on payrolls, official data showed Wednesday.

The jobless rate in the 19 countries that use the euro rose to 7.3 percent in April, the first full month when pandemic lockdowns hit the continent, from 7.1 percent in March, statistics agency Eurostat said Wednesday.

Europe’s rise in unemployment has been moderate by international standards because employers are making extensive use of government-backed short-time work programs that allows them to keep employees on the payroll while they await better times.

In Germany, Europe’s largest economy, the federal labor agency pays at least 60 percent of the salary of employees who are on reduced or zero hours. Some 10.66 million people were registered for that program in March and April, and 1.06 million followed in May, the labor agency said — though it stressed that this doesn’t mean all of them were put on short-time work. Germany has a population of 83 million.

In the US, which has fewer automatic furlough schemes than Europe, the jobless rate has rocketed to almost 15 percent from 4 percent before the crisis.

The European jobless figures, however, also appear flattered by the fact that some unemployed people likely stopped looking for work and stopped counting as jobseekers.

On Wednesday, Chancellor Angela Merkel’s coalition was spending a second day hammering out a stimulus package meant to help kick-start the economy. It’s expected to be worth as much as €80-€100 billion ($89-112 billion).

Germany started loosening coronavirus restrictions on April 20, about a month after they were introduced, and the easing has gathered pace since. However, the economy went into a recession in the first quarter and that is expected to deepen in the current quarter.


Saudi labor force figures on the rise before pandemic

Updated 08 July 2020

Saudi labor force figures on the rise before pandemic

  • Trend driven by increase in female employment, but second quarter data will reveal impact of virus on jobs

RIYADH: Saudi unemployment dipped below 12 percent in the first quarter for the first time in four years — but the government data does not reflect the impact of the coronavirus COVID-19 pandemic.

The Labor Force Survey published by the General Authority of Statistics (GASTAT), which was conducted in January 2020, before the pandemic, showed that the total unemployment rate amounted to 5.7 percent in the first quarter, unchanged compared to the first quarter of the previous year.

Regional economies have been hit by the double whammy of the coronavirus and weak oil prices which has forced major employers to lay off staff throughout the Gulf and led to the departure of thousands of expatriate workers.

Last week the International Labor Organization warned the outlook for the global jobs market in the second half of 2020 was “highly uncertain” and that employment was unlikely to return to pre-pandemic levels this year. 

“The estimates have revised upwards considerably the damage done to our labor markets by the pandemic,” said Guy Ryder, ILO director-general.

The Saudi unemployment rate decreased to 11.8 percent in the first quarter of 2020, from 12.5 percent the same period in 2019, and compared to 12 percent in the last quarter of 2019. 

The figures also reflect an increase in the total labor force participation rate to 58.2 percent in the first three months of 2020, a jump of 1.8 percentage points compared to the same period in 2019.

GASTAT said that the stability in the unemployment rate and the increase of labor force participation rate were due to the increase in the number of employees in the survey.

That trend was driven by a decrease in the Saudi female unemployment rate that stood at 28.2 percent in the first quarter of 2020, 2.7 percentage points lower than the last quarter in 2019. 

Meanwhile the Saudi male unemployment rate rose to 5.6 percent, 0.6 percentage points higher than the rate of last quarter in 2019.

The statistics show that there are almost 9.98 million people in employment across the public and private sectors.

About 3.2 million of them are Saudis. The figures exclude workers in the security and military sectors. 

The data also reveal that there are 3.66 million domestic workers in the country, all of them non-Saudis.

The labor market statistics are compiled from two main sources. The first is the labor force survey, which is a household survey that is carried out by GASTAT and provides the most important indicators of the labor market, such as the unemployment and labor force participation rates.

The second source is administrative data which is recorded and updated by government agencies related to the labor market.