German employment numbers failed to rise in 2025

The number of employed people in Germany failed to rise last year for the first time since the coronavirus pandemic, official figures showed on Friday.

According to initial estimates by the federal statistical office, around 46 million people were employed in 2025, 5,000 fewer than in the previous year.

This marks the end of a positive trend that had been under way since 2021. The last decline was seen in 2020, the year the coronavirus outbreak was declared a global pandemic.

Jobs were lost primarily in the manufacturing sector (down 1.8%), construction (down 0.9%) and fishing, agriculture and forestry (down 0.5%), the agency, also known as Destatis, said.

In the already dominant service sector, however, employment numbers grew again by 0.5%.

Statisticians pointed to the weak German economy and the growing effects of demographic change as reasons for the stagnation, as fewer and fewer young workers are replacing the baby boomers who are retiring.

According to the agency, three out of four people in Germany work in the service sector. Meanwhile, the public sector, including healthcare, has recently seen the most growth.

The number of self-employed people alongside family members assisting them, who together still make up 3.7 million of the workforce, continues to decline.