According to preliminary calculations by the Federal Statistical Office (Destatis), the number of employed people in Germany was approximately 45.6 million in the first quarter of 2026. When compared to the previous quarter, the seasonally adjusted employment figure saw a slight decrease of 0.1 percent, representing 61,000 fewer people. This minor decline is consistent with trends observed in both the third and fourth quarters of 2025, which also saw the seasonally adjusted employment fall by 0.1 percent each.
When adjusting for seasonal effects, the drop in employed persons in Q1 2026 compared to Q4 2025 was more significant, amounting to 1.1 percent (486,000 people). While a seasonal drop at the beginning of the year is generally expected, the decline in 2026 was notably steeper than the average seen between 2023 and 2025, registering a loss of 381,000 people (-0.8 percent).
The year-over-year comparison showed that employment in Q1 2026 decreased by 0.3 percent, or 157,000 people, compared to the first quarter of 2025. Historically, the trend of workforce declines had been flattening since the Corona crisis peak in Q2 2022 (which recorded a substantial increase of 679,000 people, or 1.5 percent). By Q2 2025, the level had only surpassed the previous year’s level by 15,000 people (0.0 percent).
Sectoral Trends
Analysis of employment by sector revealed a mixed picture. While the services sector saw an increase of 0.1 percent compared to the previous year (a gain of 45,000 people), activity outside of services experienced a notable contraction, falling by 1.8 percent overall (202,000 people).
Within the services sector itself, different areas showed varied progress. The Public Services, Education, and Health sector continued its long-term upward trend, growing significantly by 1.5 percent (181,000 people). The second largest increase came from Other Services (including associations and advocacy groups), which grew by 0.7 percent (21,000 people). The Financial and Insurance Services sector reported a modest increase of 1.2 percent (13,000 people).
However, other key areas contracted. The Information and Communication sector saw its workforce shrink by 1.5 percent (24,000 people), while Business Services, including employment agencies, saw the largest decline in this segment, dropping by 1.2 percent (72,000 people). Furthermore, the Trade, Transport, and Hospitality sector experienced a decrease of 0.8 percent (81,000 people).
The manufacturing sector also continued to decline. The independently produced goods sector (excluding construction) saw a substantial yearly reduction of 2.1 percent, accounting for 171,000 fewer jobs. Construction employment dropped by 1.1 percent (27,000 people), and in agriculture and forestry, fishing saw a decline of 0.7 percent (4,000 people).
Precarious and Self-Employed Status
The positive development observed in mandatorily insured employment concluded in Q4 2025. For Q1 2026, data from the Federal Employment Agency continued to show a downward trend compared to the previous year. Furthermore, the number of employees engaged in exclusively marginal activities (minijobbers, short-term workers, and those in work placement) continued to decrease. Overall, the employed population fell by 0.3 percent compared to Q1 2025, standing at 42.0 million people. The number of self-employed persons, including assisting family members, also continued to fall, decreasing by 1.0 percent compared to the same period last year, to 3.6 million.
Working Hours and Economic Volume
According to preliminary figures from the Institute for Labour Market and Demographic Research (IAB), the average hours worked per employed person rose by 0.3 percent in Q1 2026 compared to the previous year, reaching 344.2 hours. Despite the decline in the employed population, the total economic labor volume-calculated by multiplying the reduced number of employed people by the increased hours worked per person-remained unchanged at 15.7 billion hours (0.0 percent change).
