Preliminary data from the Federal Statistical Office (Destatis) indicated that the number of employed individuals in Germany reached approximately 45.6 million during the first quarter of 2026. This figure represented a seasonal decrease of 61,000 people, or 0.1 percent, compared to the previous quarter. Generally, a drop in employment of 0.1 percent has been observed in the third and fourth quarters of 2025 following seasonal adjustments.
Looking at the decline without seasonal adjustments, employment fell by 486,000 people-or 1.1 percent-in Q1 2026 compared to Q4 2025. While a seasonal dip during the start of the year is typical, the reduction in the first quarter of 2026 was more significant than historical averages, falling by over 100,000 people more than the average seen between 2023 and 2025 (-381,000 people; -0.8 percent).
Year-on-year, the number of employed individuals dropped by 157,000 people (-0.3 percent) in Q1 2026 compared to Q1 2025. The year-on-year decline trend continued into Q3 2025, marking the first time since Q1 2021 that employment fell compared to the same period the previous year (-19,000 people; 0.0 percent). Previously, the post-crisis employment boom peaked in Q2 2022 (+679,000 people; +1.5 percent), after which growth gradually leveled off, reaching a year-on-year increase of only 15,000 people (0.0 percent) in Q2 2025.
Analyzing the sectors, employment in service areas grew in Q1 2026, rising by 45,000 people (+0.1 percent) compared to the previous year. However, employment outside the services provided a sharp decline, falling by 202,000 people (-1.8 percent).
Within the service sector, growth was uneven. The areas of public services, education, and health continued their long-term upward trend, increasing significantly by 181,000 people (+1.5 percent). The second largest increase in services came from Other Services (including associations and interest groups), which grew by 21,000 people (+0.7 percent). Financial and insurance services recorded a rise of 13,000 people (+1.2 percent).
Conversely, the Information and Communications sector saw working populations continue to decrease, declining by 24,000 people (-1.5 percent). Company services (including personnel placement) saw the deficit widen to 72,000 people (-1.2 percent). The retail, transport, and hospitality sector job numbers fell by 81,000 people (-0.8 percent).
In the manufacturing sector (excluding construction), the number of employed people continued to shrink sharply in Q1 2026 year-on-year, decreasing by 171,000 people (-2.1 percent). The construction industry also saw layoffs, dropping by 27,000 people (-1.1 percent), while employment in agriculture, forestry, and fishing declined by 4,000 people (-0.7 percent).
Shifting focus to employment status, the positive trend for mandatory social insurance employment ended in Q4 2025. The Federal Employment Agency reported that this downward trend continued into Q1 2026. Losses were noted particularly among workers in marginal employment (short-term, marginally paid, and those in work placements). Overall, the number of employees decreased by 120,000 people (-0.3 percent) compared to Q1 2025, reaching 42.0 million. Self-employment also contracted year-on-year, dropping by 37,000 people (-1.0 percent) to 3.6 million.
Finally, according to preliminary estimates from the Institute for Employment Research (IAB), average working hours per employed person rose by 0.3 percent in Q1 2026 compared to the previous year, reaching 344.2 hours. However, the total economic work volume-calculated as the product of the falling employment numbers and the rising individual working hours-remained unchanged at 15.7 billion hours during the same period (0.0 percent).