The labour market in September 2026

The autumn upturn begins without momentum

30.09.2026 | Press release no.37

"The autumn upturn in the labour market begins in September. The start, however, is rather lacklustre. The economic recovery has not yet been felt in the labour market,” said Andrea Nahles, Chief Executive of the Federal Employment Agency (BA), today at the monthly press conference in Nuremberg.

Unemployment figures for September:
-67,000 to 2,994,000
Unemployed figure compared to last year:
+40,000
Unemployment compared to last month:
-0.1 percentage points to 6.4%

Unemployment and underemployment

With the onset of the autumn upturn – albeit a lacklustre one – unemployment fell by 67,000 to 2,994,000 in September 2026. The unemployment rate fell by 0.1 percentage points to 6.4 per cent. However, on a seasonally adjusted basis, the number of unemployed rose by 12,000 compared with the previous month. Compared with September last year, it is 40,000 higher. The unemployment rate has risen by 0.1 percentage points compared with the same period last year. The unemployment rate calculated by the Federal Statistical Office in accordance with the ILO short-term employment concept amounted to 4.3 per cent in August.

In addition to unemployment, underemployment also takes labour market policy and short-term incapacity for work into account, and, therefore, provides a more comprehensive picture. On a seasonally adjusted basis, it fell by 7,000 in September compared with the previous month. At 3,615,000, it was 25,000 higher than a year ago.

Short-time work

Before the start of short-time work, companies are required to notify the authorities of the expected loss of working hours. According to the latest data, from 1 to 24 September inclusive, 18,000 people were reported as being on short-time work due to the economic downturn.

Current data on actual usage is available until Juli 2026. According to preliminary extrapolated figures, cyclical short-time working allowance was paid to 118,000 employees this month. That was 13,000 fewer than the previous month and around 69,000 fewer than a year ago. However, when viewed over the longer term, the current figure remains slightly elevated.

Gainful employment and persons employed

According to the Federal Statistical Office, the number of persons in employment (in line with the domestic concept) fell by 29,000 in August 2026 compared to the previous month if the figures are adjusted to account for seasonal factors. At 45.58 million, it is 236,000 lower than in the previous year. According to projections by the Federal Employment Agency, seasonally adjusted employment subject to social insurance contributions fell by 12,000 between June and July 2026. Compared to the previous year, it was 84,000 lower at 34.68 million persons employed. 7,61 million people were in marginal employment in July 2026, 50,000 fewer than in the same month last year. Of these, 4.09 million were employed exclusively in low-paid jobs and 3.52 million in part-time jobs.

Labour demand

Labour demand remains weak. 660,000 jobs were registered with the Federal Employment Agency (BA) in September – 30,000 fewer than a year ago. The BA Job Vacancy Index (BA-X) – an indicator of labour demand in Germany that takes into account not only the number of registered job vacancies but also new vacancies – rose by 1 point to 104 points in September 2026. Compared to the same month last year, the BA-X is 6 points higher.

Cash benefits in the event of unemployment and need for assistance

1,082,000 people received unemployment benefits in September 2026 according to BA projections, 85,000 more than a year ago. The number of citizens eligible for income support was estimated at 3,704,000 in September. Compared to September 2025, this was a decrease of 145,000 people. This means that 6.8 percent of people of working age living in Germany were in need of assistance.