“As is normal at the start of a new year, unemployment and underemployment increased markedly this month. The growth in employment is continuing but it is increasingly losing its momentum”, said Andrea Nahles, Chair of the Federal Employment Agency (BA), at the monthly press conference in Nuremberg today.

Unemployment rate in January:
+186,000 to 2,993,000
Number of unemployed persons in comparison with the same time last year:
+187,000
Unemployment rate in comparison with the previous month:
+0.4 percentage points to 6.4 percent

Unemployment, underemployment and economic inactivity

In January 2025, in the course of the winter break, unemployment increased by 186,000 to 2,993,000. On a seasonally adjusted basis, the number of unemployed persons also increased in comparison with the previous month – all in all, by 11,000. In comparison with January last year, there were 187,000 more unemployed persons. The unemployment rate increased by approximately 0.4 percentage points, amounting to 6.4 percent. In comparison with the same month last year, the rate had increased by 0.3 percentage points. In December, the unemployment rate determined by the Federal Statistical Office according to the ILO concept of employment was 3.2 percent.

On a seasonally adjusted basis, underemployment, which along with unemployment also includes short-term incapacity to work, increased by 6,000 in comparison with the previous month. In January 2025, total underemployment was 3,714,000, which is 107,000 more than one year ago.

Short-time work

Before the start of short-time work, companies are required to submit a notification regarding the expected loss of work. According to the current data, from 1st until 27th January, short-time work due to market conditions was reported for 54,000 people.

The latest data on the actual take-up is available until November 2024. According to preliminary extrapolated data from the Federal Employment Agency, the cyclical short-time allowance was paid for 293,000 employees in this month, after 263,000 in October and 221,000 September.

Economic activity and employment

According to the Federal Statistical Office, on a seasonally adjusted basis, the number of economically active people (according to the domestic concept) increased by 4,000 in December 2024 in comparison with the previous month. At 46.17 million people, the total number of economically active people had fallen by 26,000 in comparison with the previous year. According to the calculations of the BA, on a seasonally adjusted basis, the number of persons in employment subject to social security contributions decreased by 5,000 from October to November 2024. In comparison with the previous year, the overall figure increased by 94,000 to reach 35.22 million in November, with the increase solely accounted for by people from third countries. In November 2024, 7.66 million people were in marginal “mini job” employment, 29,000 more than in the same month of the previous year. Of this total, for 4.15 million people, this low-paid employment was their only job, while for 3.52 million, it was just a side job.

The demand for labour

In January, 632,000 job vacancies were registered with the BA, 66,000 fewer than one year ago. The BA Jobs Index (BA X) – an indicator for the demand for staff in Germany which also takes the number of registered jobs and new jobs into account – remained unchanged in January 2025 at 106 points. In comparison with the same month last year, the BA-X recorded a fall of 9 points.

Cash benefits for unemployment and persons requiring support

In January 2025, 1,005,000 people were in receipt of Unemployment Benefit, which is 92,000 more than one year ago. The projected total number of people able to work and entitled to Citizen’s Benefit in January was 3,965,000. In comparison with January 2024, this was a decrease of 18,000 people. This means that 7.2 percent of people of working age living in Germany were in need of support.

The market for vocational training and apprenticeships

From October 2024 until January 2025, following the traditional placement period, in the market for vocational training and apprenticeships, some 72,000 young people were seeking an apprenticeship with an immediate start, almost 8,000 more than in the same period last year. Approximately 78,000 registered apprenticeships were available in businesses, some 7,000 fewer than in the previous year. In January 2025, 33,000 applicants had failed to find anything, while another 20,000 were still seeking an apprenticeship although they also had alternative options. At the same time, 15,000 apprenticeships remained unfilled. 

So far, 4 percent more applicants are registered for the new reporting year of 2024/25 than in the same period last year. The number of in-company training positions is 5% lower than the previous year’s figure. In January, the market for apprenticeships is still very busy, however.