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Unemployment is falling slightly – but worries remain great!
Unemployment in Germany remains stable at 6.2%. The Federal Employment Agency reports that there is a low willingness to hire people.
Unemployment is falling slightly – but worries remain great!
On July 1, 2025, Deutschlandfunk will report on the current situation on the German labor market. In June 2025, the Federal Employment Agency recorded a slight decrease in unemployment. The number of unemployed fell by 5,000 to a total of 2,914,000 people. However, compared to the previous year, there was an increase of 188,000 unemployed people. The unemployment rate remains unchanged at 6.2 percent compared to May, indicating stagnation.
The CEO of the Federal Employment Agency, Andrea Nahles, commented on the economic challenges that are putting strain on the labor market during a press conference in Nuremberg. It noted that the low willingness of companies to hire and the virtually stagnant growth of employment subject to social security contributions remain worrying. This economic weakness is also reflected in the seasonally adjusted figures, which document an increase in unemployment by 11,000 people compared to the previous month.
Development of employment
Employment showed a slight increase of 2,000 to 46.06 million in May 2025, but remains 61,000 employees behind the previous year's figures. Employment subject to social security contributions rose slightly by 1,000 to a total of 34.91 million, with the growth mainly attributable to foreign nationals.
A worrying signal is the 632,000 jobs reported in June, which is 69,000 fewer than in the previous year. The BA jobs index (BA-X) remains unchanged at 100 points - a decline of 9 points compared to the previous year, which illustrates the flattening demand for labor.
Short-time work and financial security
In June, 35,000 people were reported for economic short-time work. By April 2025, a total of 214,000 employees received short-time work benefits, which corresponds to a decrease of 44,000 compared to the previous month. At the same time, the labor market recorded 968,000 people receiving unemployment benefits in June, an increase of 101,000 compared to the previous year.
In addition, employable citizens' benefit recipients fell to 3,929,000 in June, which corresponds to a decrease of 76,000 compared to the previous year. Nevertheless, 7.1 percent of the working population in Germany still need help, which highlights the ongoing challenges for many households.
Situation on the training market
The training market, on the other hand, is somewhat more positive. Since October 2024, 396,000 people have applied for vocational training positions, an increase of 13,000 compared to the previous year. Nevertheless, 172,000 applicants remained unaccounted for in June. However, with 455,000 registered vocational training positions, the number falls by 25,000 compared to the previous year, while 211,000 positions remain unfilled, which indicates a bottleneck in access to training positions.
Overall, the labor market in June 2025 shows signs of economic weakness, as well Deutschlandfunk as well as that Federal Employment Agency hold onto. Developments in both the employment sector and apprenticeships raise questions about future economic improvements.