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05-Jan-2024

Record on the German labor market

To the point!

The German economy experienced a recession last year. Unimpressed, the labor market was still able to report a record: Since reunification, the number of people in gainful employment has never been as high as in 2023.

Part of the explanation: despite weakening order books companies have held on to their workforces. "However, as the economic weakness continues, it becomes costlier to hoard employees," fears LBBW Chief Economist Moritz Kraemer.

You can read about the shadows he sees in the superficially upbeat employment figures for 2023 and how things could continue in 2024 in the latest LBBW To the Point.

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