Citizens' money for highly qualified people: When education no longer protects!

Citizens' money for highly qualified people: When education no longer protects!

In Germany, the labor market situation has worsened for many people, especially for highly qualified people. Education was previously considered the best insurance against unemployment and dependence on citizens' money. However, current developments show that this does not apply to everyone. According to an analysis by fr.de Unemployment among highly qualified people has risen by 66% in the last five years. However, this remarkable increase comes from an already low level.

The number of long-term unemployed, i.e. people who have been without a job for more than twelve months, also shows frightening trends. Over 10% of this group do not have a school leaving certificate, with two thirds of those receiving citizen benefit having no completed vocational training. The current unemployment rate among graduates is 2.9%, which basically means full employment, but the rise in unemployment here is alarming.

Young people particularly affected

The situation is particularly worrying for young people under the age of 25. The unemployment rate in this age group is 29.3%, while the general rate is 26.5%. In May 2025, there were 5,882 unemployed people with a university degree under the age of 25, accounting for 2.3% of all unemployed people in this age group. In addition, 80% of unemployed people under the age of 25 have no qualifications, which makes finding a job even more difficult.

The Federal Employment Agency reports that the number of employees subject to social insurance contributions with an academic degree increased by 166,000 or 2% in 2024. Employment increases were recorded primarily in the areas of business, computer science, medicine, pharmacy, psychology and law. But despite these positive figures, the economy is stagnating, making it difficult for the unemployed to find new jobs.

Career orientation and need for skilled workers

A pressing problem is the lack of skilled workers. Around 80% of the registered positions are aimed at people who have completed vocational training. The Institute for Labor Market and Occupational Research (IAB) reports a decline in advertised positions, especially in smaller companies. This often affects young people as companies are less willing to hire new employees.

The job cuts not only affect the number of open positions, but also the age structure of the working population. Skilled workers with vocational qualifications are retiring and filling vacancies is becoming more urgent. Experts therefore recommend targeted career orientation for young people, especially in shortage occupations. Despite their high qualifications, many cannot compete in the job market if they do not have the necessary practical training.

For further information about basic security and labor market figures, visit Federal Employment Agency.