By 2025, the job market gradually developed in an unfavorable direction. The bottom line is that he is in a weaker position than he was a year ago. However, there are signs that we have reached the bottom," said Andrea Nahles, Chairwoman of the Federal Employment Agency (BA), at today's monthly press conference in Nuremberg.

Average annual unemployment rate in 2025:
2948000
Change compared to 2024:
+161000
Annual average unemployment rate compared to the previous year:
+0.3 percentage points to 6.3 percent

Unemployment and underemployment have risen for the third consecutive year against the backdrop of ongoing economic weakness.

Unemployment and underemployment continued to rise significantly on average in 2025. On the one hand, labor demand was too weak to absorb the increasing supply of labor; on the other hand, the profiles of the unemployed often did not match the demand. This means that the chances of ending unemployment by finding a job are declining and are at a historically low level. 

The number of unemployed people in Germany rose by 161,000 compared to the previous year to 2,948,000. The unemployment rate rose by 0.3 percentage points to 6.3 percent.

Underemployment, which includes unemployment, labor market policies, and short-term incapacity to work, increased by 50,000 to 3,626,000 compared to 2024.

Use of short-time work remained at an elevated level in 2025

Companies secured their employment to a similar extent as in the previous year through cyclical short-time working. 

According to initial estimates by the Federal Employment Agency, the annual average number of people on short-time work (including seasonal short-time work benefits and transfer short-time work benefits) totaled around 300,000 in 2025, up from 298,000 in 2024. 

With an average loss of working hours of around 30 percent, the use of short-time work has mathematically secured jobs for around 90,000 employees and prevented their (temporary) unemployment.

Employment subject to social security contributions rises only slightly

According to preliminary data from the Federal Statistical Office, employment (based on the domestic concept) remained virtually unchanged in 2025, with an average annual decline of 5,000 compared to the previous year.

According to statistics from the Federal Employment Agency, the annual value of employment subject to social insurance contributions increased by 48,000 to 34.89 million between June 2024 and June 2025. The increase compared to the previous year is therefore very small. Part-time employment has continued to grow, while full-time employment has declined. Furthermore, only the number of foreigners in employment subject to social security contributions has risen, while the number of Germans in such employment is declining due to demographic trends. In addition, growth in the service sectors continued, while the economic downturn led to a noticeable decline, particularly in the manufacturing sector.

Minimal wage employment has not increased. In June 2025, it fell by 11,000 to 7.67 million compared to the same month last year, with the decline attributable exclusively to paid employment. On the other hand, low-paid part-time employment has increased once again.

Demand for labor continues to decline

The reported demand for new employees continued to decline in 2025 due to weak economic development. New job postings have reached a historic low.

With an annual average of 632,000 registered job vacancies, labor demand in 2025 was 62,000 lower than in 2024. 

Job vacancies, which are a better indicator of companies' current willingness to hire, also continued to decline due to the weak economy. In total, 1,461,000 jobs were reported in 2025, 39,000 fewer than in 2024 and the lowest number in the last 25 years.