Germany’s unemployment figures have risen in July 2025, marking a notable shift in the nation’s labor market trends. The Federal Employment Agency reported an increase of 171,000 unemployed individuals compared to July of the previous year. Month-over-month, the number climbed by 65,000 to reach 2.979 million job seekers. Seasonally adjusted, unemployment rose by 2,000 compared to the preceding month, pushing the unemployment rate up by 0.1 percentage points to 6.3 percent.
Andrea Nahles, head of the Federal Employment Agency, attributed the increase to the start of the summer holiday period. She noted a continued reluctance among companies to report new job openings, with a stagnation in socially insured employment.
Underemployment, encompassing unemployment, active labor market policy measures and short-term inability to work, saw a seasonal decline of 10,000 individuals to 3.609 million. This figure, however, remains 31,000 higher than levels recorded a year prior.
The number of jobs reported to the Federal Employment Agency totaled 628,000 in July, representing a decrease of 75,000 compared to the same period last year. The BA-X Index, a key indicator of personnel demand in Germany, declined by one point in July 2025, reaching 98. This reflects a ten-point decrease compared to July of the previous year.
A total of 991,000 individuals received unemployment benefits in July 2025. The number of employable individuals eligible for basic income support for job seekers (SGB II) reached 3.877 million. This signifies that 7.0 percent of individuals of working age residing in Germany require assistance.
Despite challenging labor market conditions, applications for vocational training positions have remained relatively strong. A total of 414,000 applicants registered with employment agencies and job centers since October 2024, an increase of 12,000 compared to the previous year’s period. However, 140,000 of these applicants currently remain without training placements. The number of reported vocational training positions has fallen to 466,000, 26,000 fewer than in the same period last year. There are currently 182,000 unfilled vocational training positions needing placement.
