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German unemployment steadies in second month of lockdown
Updated 23:54, 02-Mar-2021
Ryan Thompson in Frankfurt

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The second month of extensive COVID-19 restrictions did not dramatically affect the number of German job seekers in February, as much of Europe's biggest economy remained shuttered.

The unadjusted jobless rate was unchanged from January at 6.3 percent, with just over 2.9 million people registered as unemployed in the nation of 83 million. 

Non-essential retail shops, personal care facilities and schools were closed in mid-December amid a second-wave surge in coronavirus infections. Since early November, bars and restaurants have been shut after the nation piloted an unsuccessful "lockdown lite" that sought to keep the economy open ahead of Christmas. 

 

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February's unemployment figure include around 3,800 new jobseekers, far fewer than estimates by most economists. 

Millions are not included in the tally who are unable to work because of lockdown restrictions. Short-term work schemes from the Federal Government have kept them on company payrolls, and in some cases, shortened their weekly working hours. 

However, some economists fear businesses will struggle to pay the salaries of all employees who return to work once restrictions are lifted and billions of dollars in state aid dries up. 

"The longer-term impact from the ongoing second lockdown and a high risk of insolvencies in 2021, clearly argue against too much optimism," said Carsten Brzeski, an economist at ING Think. 

Service industries such as hospitality and retail appear to be the most hesitant in post-lockdown hiring. Employment outlooks have dropped significantly from the same time a year ago, reflecting what Brzeski says is likely longer-term damage. 

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