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Germany's Employment Flat in 2025 as Unemployment Rises to 3.5%

Statisticians attribute the plateau to weaker growth alongside demographic strain.

Overview

  • Desta­tis estimates 46.0 million people were employed on average in 2025, a decline of 5,000 from 2024 and the first annual dip since 2020 after a record peak in 2024.
  • Job losses were concentrated in manufacturing (−143,000; −1.8%) and construction (−23,000; −0.9%), while services added 164,000 positions, led by public services, education and health (+205,000).
  • The number of unemployed rose by 161,000 to about 1.7 million, lifting the ILO jobless rate to 3.5%, as the active labour force increased by 156,000 to 47.5 million.
  • An EY survey fielded in November found 16% of Germans view their job as insecure, the highest share since 2009, with fears concentrated among under‑35s (21%) and low earners under €25,000 (36%), though 84% still feel secure.
  • Regional officials signal tougher months ahead, with Saxony’s labour agency chief forecasting a higher unemployment rate in 2026, while policymakers weigh reforms focused on retraining and social protections.