Employment in Germany down in 2025 for 1st time since 2020

By Mucahithan Avcioglu

ISTANBUL (AA) - Germany's total employment fell last year for the first time since 2020 due to the ongoing economic slowdown and demographic change.

Data by statistics authority Destatis on Friday showed total employment at around 46 million in 2025, down 5,000 from the previous year, which was at its highest level since the reunification of East and West Germany in 1990.

"With the exception of the pandemic year of 2020, the number of persons in employment had risen consistently since 2006. However, the pace of employment growth slowed considerably from the start of 2024," Destatis said in a statement.

Unemployment rose from 3.1% in 2024 to 3.5% last year, based on unadjusted figures. The number of unemployed also climbed by 161,000 last year, reaching 1.7 million.

The total labor force available in the labor market increased by 156,000 last year to 47.5 million.

Destatis attributed the increase in employment, as in previous years, to the influx of foreign workers and the increased participation of the domestic population in the labor force. Higher employment rates were seen among the elderly and women.

The largest contribution to employment last year came from the service sector, with a 0.5% increase (164,000 people).

However, job losses in the manufacturing and construction sectors were significant. The number of people employed in industry, including energy, fell 1.8% (143,000) last year to 7.9 million.

Employment in the construction sector decreased by 23,000 people to 2.6 million.