Germany’s labor market demonstrated modest changes in the second quarter of 2025, with approximately 46.0 million people employed. According to preliminary data released by the Federal Statistical Office (Destatis) on Friday, the number of employed individuals decreased slightly by 7,000 compared to the previous quarter, after seasonal adjustments. This follows a slight increase of 17,000 in the first quarter of 2025.
Without seasonal adjustment, employment rose by 198,000, or 0.4 percent, between the first and second quarters of 2025 – a typical trend for this period. However, this increase was less pronounced than the average of 266,000 (+0.6 percent) observed between 2022 and 2024.
Year-over-year comparisons reveal a slight increase of 10,000 employed individuals in the second quarter of 2025. The pace of employment growth has slowed considerably since a peak following the coronavirus crisis in the second quarter of 2022, which saw a rise of 679,000 (+1.5 percent). In the first quarter of 2025, employment surpassed the previous year’s level by only 40,000 (+0.1 percent).
Service sectors experienced growth in employment, increasing by 178,000 (+0.5 percent) compared to the same quarter last year. However, employment outside of services declined by a total of 168,000 (-1.5 percent).
Within the service sector, public services, education and healthcare continued a long-term upward trend, with an increase of 225,000 (+1.9 percent). Other services, including associations and interest groups, saw the second-largest increase with +24,000 (+0.8 percent).
Financial and insurance services added 19,000 (+1.8 percent) to their workforce. Conversely, employment in information and communication decreased by 4,000 (-0.3 percent) after nearly nine years of sustained growth, including the period spanning the coronavirus crisis. Employment in trade, transport and hospitality declined by 38,000 (-0.4 percent) and business and professional services, including temporary staffing agencies, fell by 56,000 (-0.9 percent).
Manufacturing (excluding construction) saw a decrease of 141,000 (-1.7 percent) in employment year-over-year. Construction employment also declined by 21,000 (-0.8 percent), as did employment in agriculture, forestry and fishing, which fell by 6,000 (-1.0 percent).
The positive trend in employment subject to social security contributions largely prevented a more significant year-over-year decline. Employment fell in marginal and short-term employment categories. The total number of employees increased slightly by 54,000 (+0.1 percent) to 42.3 million, while the number of self-employed individuals (including assisting family members) continued to decrease by 44,000 (-1.2 percent) to 3.7 million.
According to initial preliminary calculations by the Institute for Employment Research (IAB) of the Federal Employment Agency, average hours worked per employed person decreased by 0.5 percent to 315.4 hours in the second quarter of 2025. Total economic labor input-the product of relatively stable employment figures and reduced hours worked-fell by 0.5 percent to 14.5 billion hours, according to Destatis.
Data released on Thursday by Eurostat indicated that employment, calculated using harmonized European methods, increased by an average of 0.7 percent year-over-year in both the 27 member states of the European Union and the Eurozone during the second quarter of 2025.
