Overview

• Germany's employment dropped to 45.8 million in Q1 2025, a 0.9% decrease from the previous quarter and 0.1% lower than a year earlier.
• This marks the second consecutive quarter of year-on-year employment decline, reversing growth trends seen since mid-2021.
• New significant business formations increased by 11.4% year-on-year in Q1 2025, with 36,500 firms established.
• Total business registrations, including transformations, rose by 2.1% to 206,100, while 175,000 businesses deregistered during the same period.
• Economic pressures such as high energy costs, rising unemployment, and industrial layoffs persist, but entrepreneurial activity offers potential for future job creation.