The number of unemployed people is the central labour market supply indicator. It shows the number of people who are willing and able to work, but currently have no job. This group of people can be defined in different ways. The number of registered unemployed published by the Federal Employment Agency is most prominent in the public’s awareness in Germany. However, the number of unemployed according to the concept of the International Labour Organization (ILO) is better suitable for examining trends and making comparisons as it is not affected by changes in social law provisions.
The terms “registered unemployment” and “unemployment” are mostly used as synonyms in general usage. In the field of official statistics, however, “registered unemployment” has become a common term for the register data of the Federal Employment Agency, while “unemployment” generally refers to the figures obtained in accordance with the ILO concept.
ILO’s employment status concept, which is applicable at the international level, assigns one of three statuses (without overlaps) to each person: persons in employment are people who had a paid job during the reference period, irrespective of the total of hours worked and the amount paid for it. People who are not in employment are considered unemployed if they are actively seeking employment and would be available for starting a job at short notice. People to whom none of the two definitions apply belong to the inactive population.
Unemployed people (ILO concept)
In Germany, the number of unemployed people is determined in the framework of the ILO labour market statistics and, as in the other EU Member States, on the basis of the labour force survey (LFS). In this survey, the ILO definition of unemployment refers in more concrete terms to any person aged between 15 and 74 years who was not in employment, but actively sought work over the four weeks preceding the survey and would be available for starting a job within two weeks. In this context, it is irrelevant whether the persons concerned are registered with a government authority and receive social benefits from there. The unemployment rate represents unemployed persons as a percentage of the total labour force (persons in employment and unemployed).
Registered unemployed (German Social Code)
In its monthly statistics of registered unemployed, the Federal Employment Agency provides data on registered unemployment in Germany and its structures. These data are published in the form of absolute figures and rates.
As defined by the Social Code, Book III (SGB III), the unemployed include all those who are temporarily not employed or work in a job for fewer than 15 hours per week, seek employment subject to social insurance contributions for at least 15 hours per week, and in the process are available for placement efforts undertaken by the employment agencies or institutions administering basic security benefits for job-seekers and have registered there as unemployed.
The answer to the question of whether there is currently a skilled labour shortage depends especially on unemployment among specific occupational groups comprising mathematicians, IT specialists, natural scientists and technicians, the number of job vacancies for these groups and the average time needed to fill an advertised position with an expert. This information is part of the data provided by the Federal Employment Agency.