According to data from the Federal Statistical Office (Destatis), the average annual number of employed persons in Germany stood at approximately 46 million. That represents a minimal decline of 5,000 (0.0%) compared with the record year of 2024, when employment reached its highest level since German reunification in 1990. After a strong post-COVID-19 rebound, when employment grew by 1.3% and 0.7% in 2022 and 2023, respectively, growth momentum stalled — coming in at just 0.1% in 2024, with a slight regression in 2025.
Detailed quarterly data show that employment in the fourth quarter of 2025 reached 46.1 million. After seasonal adjustment, the figure fell by 25,000 (-0.1%) compared with the third quarter. In non-seasonally adjusted terms, it rose by 132,000 (+0.3%), but this was well below the 2022–2024 average (approximately 200,000). Compared with the fourth quarter of 2024, employment dropped by 58,000 (-0.1%) — the first such decline since the first quarter of 2021.
Monthly data confirm this trend. In December 2025, employment (using the Inlandskonzept — persons residing in Germany) stood at 45.9 million, representing a seasonally adjusted decline of 5,000 (-0.0%) from November. In November, employment had remained virtually unchanged (-1,000, 0.0%). The total volume of work in the fourth quarter amounted to 15.5 billion hours, a year-on-year increase of 0.5%, driven by a higher average number of hours worked per person (336.4 hours, +0.7%).
The breakdown by employment type shows that the number of salaried employees fell by 31,000 (-0.1%), while the self-employed (including family members) declined by 27,000 (-0.7%). The losses mainly affected marginal and temporary employment.
Sectoral analysis reveals a troubling trend. In the fourth quarter, service-sector employment rose by 122,000 (+0.3%). The largest gains were recorded in public services, education, and healthcare (+212,000, +1.7%), finance and insurance (+14,000, +1.3%), and other services (+17,000, +0.5%). Declines occurred in trade, transport, and hospitality (-35,000, -0.3%), business services (-74,000, -1.2%), and information and communication (-15,000, -1.0%). Manufacturing (excluding construction), meanwhile, shed 160,000 jobs (-2.0%), construction lost 20,000 (-0.8%), and agriculture was unchanged. These shifts reflect a weakening manufacturing cycle, inflationary pressures, and geopolitical uncertainties, all contrasting with the resilience of the service sector.
Unemployment rose in parallel. Under the ILO definition (Destatis/Eurostat), the unemployment rate in December 2025 stood at 3.8% among persons aged 15–74. In November it was 3.7% (unadjusted), or 3.8% after seasonal adjustment. The number of unemployed in November reached 1.64 million, up 171,000 (+11.6%) year on year.
On an annual average basis, unemployment in 2025 rose by 161,000 to 1.7 million, and the rate climbed from 3.1% to 3.5% (ILO). According to data from the Federal Employment Agency (BA), based on registered unemployed, the average annual rate was 6.3%, 0.3 percentage points higher than in 2024. In December 2025, the BA reported 6.2%, and by January 2026 the figure had already reached 6.6%. The average number of registered unemployed in 2025 was 2.948 million.
Compared with the EU, Germany had one of the lowest unemployment rates (3.8% in December), behind only Czechia (3.1%) and Malta (3.2%). The EU average stood at 5.9%. Youth unemployment (ages 15–24) in Germany was the lowest in the EU at 6.8%.
The labor market is feeling the effects of an aging society. In 2024, 24% of the employed (9.8 million) were aged 55–64 — the highest share in the EU. The average retirement age rose to 64.7, thanks to the phased increase in the statutory retirement age to 67 by 2029. This helps alleviate labor shortages but underscores the need for immigration and training. In 2025, the number of registered vacancies fell to 632,000. Experts, including BA head Andrea Nahles, point to the most difficult job-search environment in years, advising applicants to cast a wider net.
