Overview

• Unemployment in Germany is projected to increase by 140,000 in 2025, reaching 2.92 million, according to the Institut für Arbeitsmarkt- und Berufsforschung (IAB).
• Overall employment is expected to decline by 40,000, while part-time roles drive a modest increase of 60,000 in social security-contributing jobs.
• Germany's economy is forecast to grow by only 0.2% in 2025, reflecting ongoing stagnation and limited recovery prospects.
• Labor shortages, particularly in technical fields, and an aging population are compounding long-term constraints on workforce growth.
• Planned fiscal stimulus packages are anticipated to stabilize the labor market and improve economic conditions by the end of the year.