German Employment Stalls in May Amid Persistent Year-Over-Year Decline
Economy / Finance

German Employment Stalls in May Amid Persistent Year-Over-Year Decline

In May 2026, approximately 45.68 million people residing in Germany were employed, according to preliminary calculations by the Federal Statistical Office (Destatis). On a seasonally adjusted basis, the number of employed individuals remained nearly unchanged compared to the previous month, showing a slight decrease of 7,000 people (0.0 percent). However, when compared to the preceding month between May 2025 and April 2026, the average number of employed people had fallen by 16,000.

When not adjusted for seasonality, employment rose by 72,000 people (+0.2 percent) in May 2026 compared to April 2026. This increase is less than the May average for the years 2023 to 2025, which saw a gain of 81,000 people month-over-month.

In comparing May 2026 to the previous year, the number of employed people declined by 171,000 (0.4 percent). This continuation of a downward trend year-over-year on the labor market began in August 2025, a trend that was also observed in March and April 2026, both months showing a -0.4 percent change compared to the prior year.

Regarding unemployment, the Labor Force Survey showed that 1.63 million people were unemployed in May 2026. This represents 31,000 fewer people, or 1.8 percent less, compared to May 2025. Consequently, the unemployment rate dropped to 3.7 percent, placing it slightly below the previous year’s figure (3.8 percent in May 2025).

After adjusting for seasonal and irregular effects, the number of unemployed individuals stood at 1.66 million in May 2026. This marked a decrease of 11,000 people, or 0.6 percent, compared to April 2026. The seasonally adjusted unemployment rate remained constant at 3.8 percent.