Recent data released by the German Federal Statistical Office (Destatis) paints a concerning picture of the nation’s labor market, suggesting a potential slowdown in economic activity and raising questions about the efficacy of current government policies. While seasonally adjusted employment figures dipped slightly in September 2025, marking the fifth consecutive monthly decline, the broader trend reveals a more protracted period of labor market weakness.
Specifically, the decrease of 21,000 employed individuals compared to August 2025, following a series of smaller declines during the May-August period, underscores a fragility previously masked by the traditional autumnal employment uptick. While nominal employment rose by 150,000 when viewed without seasonal adjustments, this increase was significantly below the average growth observed in September 2022-2024, signaling a weakening in underlying employment dynamism.
The year-on-year comparison is even more stark. A drop of 46,000 employed individuals compared to September 2024 translates to a -0.1% decrease, continuing a trend of contraction visible since May 2025. This persistent downturn raises concerns about the long-term resilience of the German economy, particularly given its crucial role within the Eurozone.
The unemployment figures offer a further, troubling illustration of the labor market’s state. In September 2025, 1.84 million people were recorded as unemployed, a staggering increase of 425,000 – a 30.1% rise compared to September 2024. This translates to an unemployment rate of 4.1%, a substantial jump of 0.9 percentage points relative to the same period last year. Even accounting for seasonal and irregular factors, unemployment remains elevated, inching up to 3.9% and exceeding the previous month’s figures.
Critics are already pointing to potential factors contributing to this downturn, including the ongoing impact of global supply chain disruptions, inflationary pressures and a potential slowdown in export demand. Some analysts are questioning whether government support measures, intended to stimulate the labor market, are proving inadequate or misdirected. The situation demands a comprehensive reassessment of economic policy, with a focus on fostering sustainable growth and addressing the root causes of this growing unemployment crisis. The rising unemployment figures represent not just an economic challenge, but a potential social and political risk for the German government.