Prospects in German labor market remain good: research report

Prospects in the German labor market remain positive for the next three months, the labor market barometer of the German Institute for Labor Market and Vocational Research (IAB) showed on Tuesday.

Even though compared to the previous month there was a slight decrease of 0.1 points in April, the IAB's early indicator now stands with 102.4 points in the clearly positive range.

According to the corresponding subcomponent of IAB labor market barometer, the outlook for employment development is very good with a value of 105.5 points. For the development of unemployment, the corresponding value stands on the contrast with 99.4 points in the neutral to slightly negative range.

Only minor changes in the seasonally adjusted unemployment figures are to be expected in the next three months.

"The employment agencies assume a slight rise in seasonally adjusted unemployment," said Enzo Weber, director of the IAB Research Center.

This was mainly due to the effects of refugee migration, which becomes much a more perceptible phenomenon over time, he said.

However, the German labor market is in principle in good shape, said Weber, adding that employment will continue to set up records.

This was made possible by the fact that many people came from abroad to the German labor market, while the domestic participation in the labor market climbed.

The IAB labor market barometer is based on a monthly survey of all local employment agencies to their expected labor market development in the next three months.

The scale of the IAB labor market barometer ranges from 90 -- marking strongly rising unemployment -- to 110 indicating strongly declining unemployment. Enditem