Germany’s labor market is signaling a concerning slowdown, with recent data revealing a plateau in employment and a worrying surge in unemployment figures. Provisional calculations released by the Federal Statistical Office (Destatis) indicate that approximately 46.0 million individuals residing in Germany were employed in November 2025, a virtually unchanged figure compared to the previous month, marking a stark contrast to the modest gains observed in October.
While a slight increase of 7,000 individuals was recorded in employment when comparing November to October, this figure falls significantly below the average increase seen in Novembers between 2022 and 2024 (+16,000). The trend is further complicated by a noticeable decline in employment between May and September 2025, with an average monthly decrease of 14,000 positions.
More significantly, the year-on-year comparison paints a bleak picture. Employment in November 2025 was down by 51,000 individuals, representing a -0.1% decrease. This continuing downward trend, consistent across August, September and October, raises questions about the robustness of Germany’s economic recovery and the effectiveness of government policies aimed at stimulating job creation.
The rise in unemployment is particularly troubling. Destatis reports 1.64 million individuals were unemployed in November 2025, a substantial increase of 171,000, or 11.6%, compared to the same period in 2024. This translates to an unemployment rate of 3.7%, a 0.4 percentage point increase from last year’s 3.3%. The adjusted unemployment figure, accounting for seasonal and irregular fluctuations, remained elevated at 1.67 million, surpassing the previous month by 7,000 individuals.
The stagnant employment numbers and rising unemployment are likely to intensify pressure on Chancellor Scholz’s coalition government. While officials maintain that the German economy remains resilient, the data suggests underlying structural issues – potentially including the impact of rising inflation, energy costs and the ongoing geopolitical instability – are beginning to exert a significant drag on the labor market. Economists are now closely analyzing these trends to assess the potential for further deterioration and to determine whether additional intervention measures are required to prevent a more pronounced economic downturn and mitigate the escalating social consequences of increased unemployment. The government’s forthcoming revisions to its economic forecast and labor market strategy will be closely scrutinized for their responsiveness to these emerging challenges.