Job Recovery Slows in Germany

Job Recovery Slows in Germany

Germany’s unemployment figures reveal a complex picture for September 2025. While the number of registered unemployed individuals decreased month-on-month, the annual comparison indicates a significant increase.

The Federal Employment Agency reported a drop of 70,000 in the number of registered jobseekers compared to August 2025, bringing the total to 2.955 million. However, year-on-year, unemployment rose by 148,000. The unemployment rate increased by 0.1 percentage points, reaching 6.3%.

Andrea Nahles, head of the Federal Employment Agency, noted that the decrease observed compared to the previous month is primarily due to seasonal factors. She emphasized that the labor market currently lacks the necessary momentum for a more robust recovery.

A broader measure of labor market distress, which includes unemployment, short-term disability and participation in active labor market programs, stood at 3.582 million in September. This figure is 19,000 higher than a year prior, even after seasonal adjustments.

The number of reported job vacancies registered with the Agency totaled 630,000, a decrease of 66,000 compared to September of the previous year. The BA-X index, a key indicator of personnel demand in Germany, remained unchanged at 98 points. This is nine points lower than the level recorded in September 2024, suggesting a cooling in hiring activity.

An estimated 1.006 million individuals received unemployment benefits, representing an increase of 117,000 compared to the same period last year. Preliminary figures indicate that 3.854 million individuals were eligible for basic income support, a reduction of 119,000 from September 2024, representing 7.0% of the working-age population in Germany.