The labour market in May 2025

Lacklustre development continues

28 May 2025 | Press release no.24

“The traditional spring upturn, which has now petered out, proved to be lacklustre. The labour market is failing to gain the momentum needed to reverse the current trend; we therefore expect the unemployment figures to continue to rise during the summer,” explained Andrea Nahles, Chair of the Executive Board of the Federal Employment Agency (BA), on the occasion of today’s monthly press conference in Nuremberg.

Number of unemployed persons in May:
-12,000 to 2,919,000
Number of unemployed persons compared with the same time last year:
+197,000
Unemployment rate compared with the previous month:
-0.1 percentage points to 6.2 percent

Unemployment, underemployment and economic inactivity 

In the course of the spring upturn, in May 2025, unemployment fell by 12,000 to 2,919,000. On a seasonally-adjusted basis, it increased by 34,000 compared with the previous month. In comparison with May last year, 197,000 more people were unemployed. The unemployment rate fell by 0.1 percentage points to 6.2 percent. Compared with the same month in the previous year, the rate increased by 0.4 percentage points. In April, the unemployment rate determined by the Federal Statistical Office according to the ILO concept of employment was 3.8 percent.

Underemployment not only encompasses unemployment, but also labour market policy and short-term incapacity for work, and therefore paints a broader picture. On a seasonally-adjusted basis, underemployment fell by 2,000 in comparison with the previous month. In May, it amounted to 3,602,000 persons. This is 58,000 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 current data, from 1st up to and including 22nd May, cyclical short-time work was notified for 33,000 people.

The latest data on the actual take-up is available until March 2025. According to the initially projected data, the cyclical allowance for short-time work was paid to 248,000 workers in that month. That was 13,000 fewer than in the previous month, but 38,000 more than in the March of the previous year.

Economic activity and employment

According to the Federal Statistical Office, in April 2025, on a seasonally-adjusted basis, the number of economically active persons (according to the domestic concept) increased by 3,000 compared with the previous month. At 45.96 million people, this total had fallen by 61,000 in comparison with the previous year. According to the projections of the BA, on a seasonally-adjusted basis, employment subject to social security contributions increased by 1,000 from February to March 2025. In comparison with the previous year, such employment had increased by 78,000 to reach 34.89 million employed persons, with the increase solely accounted for by foreign citizens. In March 2025, 7.55 million people were in low-paid “mini job” employment, 6,000 more than in the same month last year. Of this total, for 4.11 million people, this low-paid employment was their only job, while for 3.44 million, it was just a side job.

Demand for labour

In May, 634,000 job vacancies were registered with the BA, 67,000 fewer than one year ago. The BA Jobs Index (BA X) – an indicator of the demand for staff in Germany, which takes into account both already-existing and newly registered vacancies – fell in May 2025 by 5 points to 100 points. Part of this sharp fall is in response to a one-time effect which resulted in an exceptional increase in the number of job vacancies in April, however. In comparison with the same month last year, the BA-X fell by 11 points.

Cash benefits for unemployment and required assistance

In May 2025, according to the projections of the Federal Employment Agency, 952,000 people were in receipt of Unemployment Benefit, which is 95,000 more than one year ago. The projected number of people able to work and entitled to Citizen’s Benefit in May was 3,948,000. In comparison with May 2024, this was a decrease of 66,000 people. Therefore, 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, 375,000 applicants have registered for a vocational training position at the agencies for employment and Jobcenters, which is 11,000 more than in the same period of the previous year. Of this total, 191,000 of these applicants were yet to have secured a vocational training position in May. At 441,000, approximately 28,000 fewer vocational training places were registered as available in comparison with the same period in the previous year. 229,000 vocational training positions remained vacant and unfilled in May. In May, the market for apprenticeships remains very busy, however. Therefore, the latest data only allows for a preliminary assessment of the developments.