New data released by the German Federal Statistical Office (Destatis) reveals a significant increase in job losses directly attributable to business insolvencies over the past four and a half years. The figures, obtained by the political alliance Sahra Wagenknecht (BSW) and reported by “Bild”, illustrate a concerning trend impacting the German labor market.
In 2021 and 2022, approximately 75,687 and 83,597 employees respectively were affected by business failures. However, these numbers escalated sharply in 2023, reaching 165,984. The year 2024 saw an even greater impact, with 184,494 individuals losing their jobs due to company insolvencies. The trend continues into 2025, with 92,202 employees affected during the first six months alone.
Cumulatively, this represents close to 600,000 individuals across Germany who have experienced job displacement as a result of business insolvencies spanning from January 2021 to June 2025.
Sahra Wagenknecht, founder of the BSW, commented on the situation, stating that business failures are increasingly impacting German workers. “185,000 employees were victims of company insolvencies alone last year – a sad record. And in 2025, it will likely be even more.
Wagenknecht attributed the surge in insolvencies and subsequent unemployment to what she described as flawed economic policies. She specifically pointed to the continuing impact of policies even following a recent change in personnel and stated that high energy costs and excessive bureaucracy are stifling small and medium-sized businesses and contributing to deindustrialization.
