It will take up to three years for the German labor market to recover from the crisis caused by the coronavirus pandemic, estimated Detlef Scheele, president of the Federal Labor Agency (BA).
“Without a doubt, we will have to wait until 2022 or 2023 to return to normality. But we believe that this can be achieved again“, said Scheele.
Currently 2.85 million people in Germany are out of work, almost 640,000 of them as a result of the pandemic. The country has 83 million inhabitants.
Scheele said he expects an even higher unemployment rate this summer, which is also seasonal, but considered that, based on current estimates, the figure will not exceed three million in July or August.
The executive stressed that the current crisis is related to the virus and is hardly caused by economic or structural factors, so it is possible that a recovery will occur if the fundamental factors move in the right direction.
“Currently, we assume that this is a slowdown, which is mainly due to the effects of the pandemic. The labor market was in good shape”, said Scheele.