Overview

• The IAB labor market barometer fell to 98.2 in March 2025, its lowest level since the COVID-19 pandemic and the seventh straight monthly decline.
• The unemployment prediction component dropped by 0.4 points to 96.5, remaining in negative territory for the second consecutive month.
• The employment component dipped below the neutral threshold of 100 for the first time since the pandemic, reaching 99.9 points.
• German employment agencies no longer expect job growth in healthcare and education to offset significant industrial job losses.
• While Germany's labor market worsens, the European labor market barometer stabilized at 99.6, signaling a potential halt to the broader decline but no recovery yet.