The German labor market in 2024 in figures

The labor market in Germany stand on shaky grounds. Unemployment is rising, and the slowdown in employment has been increasingly noticeable since the second half of 2024. Here are a few key statements from the Federal Statistical Office and the IAB:

– In 2024, employment grew by 72,000 people

– The increase in employment is declining sharply

– Overall, the growth in employment is due exclusively to foreign workers

– More Germans are retiring and leaving the labor market than Germans are joining

And that’s a lot that can be summarized for the sectors.

– Only the service sectors contributed to the increase (+150,000)

– In the health sector, education and public administration, employment increased by 194,000 people

– In the manufacturing sector, the number of employed people fell by 50,000

– In the construction industry by 28,000

– In industry, 10,000 jobs are currently being lost every month

This means that the labor market is very tough for the unemployed. There are 654,000 jobs registered with the Employment Agency (BA), 59,000 fewer than a year ago. In principle, however, the BA also expects slight employment growth in 2025.

Since employment of Germans has been declining since 2023 due to demographic change, this growth can only be achieved by skilled workers from abroad. According to statistics, growth in 2024 will also be due to skilled workers coming to Germany from third countries, i.e. outside the EU.

According to a survey by the German Economic Institute (IW Cologne), 25 business associations are predicting job cuts in their sectors. Only seven associations are expecting more employees. Fewer jobs are therefore likely to be found primarily in industry, such as in the iron and steel sector, in mechanical engineering or in the construction industry. More jobs are expected in the pharmaceutical industry, in aerospace engineering and in the investment sector.