Labour market in August 2025

Rise in unemployment due to the summer break

29 Aug 2025 | Press release no.35

In August, what we had expected came to pass: due to the summer break, unemployment rose to over 3 million. The labour market continues to be affected by the economic downturn of recent years. However, there are also initial signs of stabilisation," said Andrea Nahles, Chairwoman of the Executive Board of the Federal Employment Agency (BA), at today's monthly press conference in Nuremberg.

Unemployment figures for August:
+46,000 – now 3,025,000
Unemployed persons compared to last year:
+153,000
Unemployment compared to last month:
+0.1 percentage points – now 6.4 percent

Unemployment and underemployment

Due to the summer break, unemployment rose by 46,000 to 3,025,000 in August 2025. Seasonally adjusted, it decreased by 9,000 compared with the previous month. Compared to August last year, the unemployment figure is 153,000 higher. The unemployment rate rose by 0.1 percentage points to 6.4 percent. Compared with the same month last year, the rate rose by 0.3 percentage points. The unemployment rate calculated by the Federal Statistical Office in accordance with the ILO short-term employment concept stood at 3.9 percent in July.
In addition to unemployment, underemployment also includes labour market policy and short-term incapacity to work, and therefore provides a more comprehensive picture. It has now fallen for the third month in a row on a seasonally adjusted basis. In August, it stood at 3,634,000. That was only 25,000 more than a year ago.

Short-time work

Before initiating short-time work, companies must notify the authorities of the expected loss of working hours. According to the latest data, from 1 to 25 August inclusive, 25,000 people were reported as being on short-time work due to the economic downturn.

Current data on actual usage is available until June 2025. According to preliminary estimates, short-time work benefits were paid to 211,000 employees this month. Although short-time working remains at a high level, it has been declining slightly since the beginning of the year.

Short-term employment and employment

According to the Federal Statistical Office, the number of people in employment (based on the domestic concept) rose by 4,000 in July 2025 compared with the previous month, after seasonal adjustment. At 45.98 million, it is 5,000 lower than in the previous year. According to projections by the Federal Employment Agency, seasonally adjusted employment subject to social insurance contributions rose by 25,000 between May and June 2025. Compared to the previous year, the number of people in employment rose by 60,000 to 34.90 million, with the increase attributable solely to people of foreign nationality. 7.69 million people were in marginal employment in June 2025, 3,000 more than in the same month last year. Of these, 4.19 million were employed exclusively in low-paid jobs and 3.49 million in part-time jobs.

Labour demand

631,000 jobs were registered with the Federal Employment Agency (BA) in August – 68,000 fewer than a year ago. The BA Job Index (BA X) – an indicator of demand for personnel in Germany that takes into account both the number of registered jobs and new registrations – remained unchanged at 98 points in August 2025. Compared to the same month last year, the BA-X is down by 8 points

Cash benefits in the event of unemployment and need for assistance

1,019,000 people received unemployment benefits in August 2025 according to BA projections, 99,000 more than a year ago. The number of citizens eligible for income support was estimated at 3,901,000 in August. Compared to August 2024, this was a decrease of 88,000 people. This means that 7.1 per cent of people of working age living in Germany were in need of assistance.

Training market

Since October 2024, 430,000 applicants have registered with employment agencies and job centres for an apprenticeship, 12,000 more than in the same period last year. 98,000 of them were still not placed in August. At 477,000, the number of registered apprenticeships is 25,000 lower than in the same period last year. 129,000 unfilled apprenticeships were still available in August. In August the training market is still in flux. In particular, the number of unfilled training places and unplaced applicants will decrease significantly by the end of the reporting year on 30 September.