The labour market in March 2025

A muted spring upturn

28 Mar 2025 | Presseinfo Nr. 14

“March traditionally marks the start of what is known as the spring upturn on the German labour market. This year, however, the upturn has once again been noticeably muted because of the economic downturn,” explained Andrea Nahles, Chair of the Federal Employment Agency (BA), at today’s monthly press conference in Nuremberg.

Number of unemployed persons in March:
-22,000 to 2,967,000
Number of unemployed persons compared with the same time last year:
+198,000
Unemployment rate in comparison with the previous month:
unchanged at 6.4 percent

Unemployment, underemployment and economic inactivity 

With the onset of this year’s muted spring upturn, in March 2025, unemployment fell by 22,000 to a total of 2,967,000. On a seasonally-adjusted basis, it increased by 26,000 compared with the previous month. In comparison with March last year, 198,000 more people were unemployed. The unemployment rate compared with the previous month remained unchanged at 6.4 percent. Compared with the same month in the previous year, the rate had increased by 0.4 percentage points. In February, the unemployment rate determined by the Federal Statistical Office according to the ILO concept of employment was 3.6 percent.

On a seasonally-adjusted basis, underemployment, which along with unemployment also includes short-term incapacity to work, increased by 13,000 compared with the previous month. In March 2025, it amounted to 3,698,000 people. This is 97,000 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 on notifications, from 1st to 24th March inclusive, cyclical short-time work was notified for 43,000 people.

The latest data on the actual take-up is available until January 2025. According to the initially projected data, the cyclical allowance for short-time work was paid to 240,000 workers in that month. That was 36,000 more than in the previous month and 51,000 more than in the January of the previous year.

Economic activity and employment

According to the Federal Statistical Office, on a seasonally-adjusted basis, the total number of economically active people (according to the domestic concept) declined by 10,000 in February 2025 compared with the previous month. At 45.80 million people, this total had fallen by 61,000 in comparison with the previous year. According to the projections of the Federal Employment Agency, on a seasonally-adjusted basis, employment subject to social security contributions fell by 12,000 from December 2024 to January 2025. In comparison with the previous year, such employment had increased by 51,000 to reach 34.81 million employed persons, with the increase solely accounted for by foreign citizens. In January 2025, 7.5 million people were in marginal “mini job” employment, 22,000 more than in the same month of the previous year. Of this total, for 4.09 million people, this low-paid employment was their only job, while for 3.41 million, it was just a side job.

The demand for labour

In March, 643,000 job vacancies were registered with the Federal Employment Agency, 64,000 fewer than one year ago. The Federal Employment Agency’s Jobs Index (BA X) – an indicator of the demand for staff in Germany which also takes the number of registered jobs and new jobs into account – remained unchanged in March 2025 at 103 points. Compared with the same month in the previous year, the BA-X had recorded a decline of 10 points.

Cash benefits for unemployment and persons requiring support

In March 2025, according to the projections of the Federal Employment Agency, 1,013,000 people were in receipt of Unemployment Benefit, which is 115,000 more than one year ago. The projected number of people able to work and entitled to Citizen’s Benefit in March was 3,959,000. In comparison with March 2024, this was a decrease of 53,000 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

Since October 2024, 327,000 applicants have registered for a vocational training position at the agencies for employment and Jobcenters, which is 10,000 more than in the same period of the previous year. At 416,000, approximately 22,000 fewer vocational training places were registered as available in comparison with the same period of the previous year. In March, the market for apprenticeships remains very busy, however. Therefore, the latest data only allows for a preliminary assessment of the developments.