Job Growth Stalls in June

Job Growth Stalls in June

Preliminary figures released by the Federal Statistical Office (Destatis) indicate a slight easing in the German labor market during June 2025. Approximately 45.9 million people residing in Germany were employed, a marginal decrease of 20,000 individuals when adjusted for seasonal variations compared to the previous month. This trend follows a similar decline observed in May 2025, where employment figures saw a reduction of 18,000.

Unadjusted for seasonal factors, the number of employed persons fell by 4,000 in June 2025 compared to May 2025. This contrasts with the trend seen in the period from June 2022 to June 2024, during which employment generally rose by an average of 41,000 individuals month-on-month.

When comparing June 2025 to June 2024, the overall number of employed persons experienced a near negligible change, a reduction of 3,000 people. The May 2025 figures also showed a minimal increase compared to the same month in the previous year (+11,000 people).

During the second quarter of 2025, preliminary calculations suggest an average of approximately 46.0 million people were employed in Germany, a minor decrease of 7,000 individuals when seasonally adjusted, compared to the previous quarter.

According to the labor force survey, 1.58 million people were unemployed in June 2025. This represents an increase of 76,000 individuals, or 5.1 percent, compared to June 2024. Consequently, the unemployment rate rose to 3.6 percent, showcasing an increase of 0.2 percentage points from the 3.4 percent recorded in June 2024.

Adjusting for seasonal and irregular influences, the number of unemployed persons in June 2025 stood at 1.61 million, a slight decrease of 3,000 individuals (a reduction of 0.2 percent) compared to the previous month. The adjusted unemployment rate remained unchanged at 3.7 percent.