ifo Dresden berichtet 6/2020

Impact of the Corona Pandemic on Regional Labor Markets

The current corona pandemic has plunged the German economy into one of the worst recessions since the Federal Republic of Germany came into existence. According to current forecasts, gross domestic product is likely to shrink by around 5% this year and - depending on the further course of the pandemic - will not yet return to its pre-crisis level next year either. This, in turn, will also have an impact on the labor market: the number of people in employment in 2020 is likely to be around 420,000 lower than in the previous year, the number of unemployed is likely to rise by almost 440,000 and will also increase slightly next year. Against this background, the present article deals with the regionally differentiated effects of the pandemic on unemployment.

Joachim Ragnitz