Aid determination by the Commission remains undecided.
In July 2025, the number of unemployed people in Germany slightly increased to 2.979 million, a rise of 65,000 compared to the previous month. However, labor market experts and economic forecasts predict that the unemployment rate will not surpass the three million unemployed mark in the near future.
The unemployment rate in July stayed steady at 6.3%, with forecasts predicting it to hold steady or slightly decrease over the next two years. This stability is largely due to the overall economic growth and the end of the recent prolonged crisis in Germany, as projected by reputable institutions like the ifo Institute and Kiel Institute, which is expected by 2026.
The increase in unemployment was particularly noticeable among young people under 25 years, with more than 28,000 additional individuals joining the ranks of the unemployed in July. This has led to concern from organizations such as the German Trade Union Confederation (DGB) and the German Social Association, who have called on the federal government to intervene and prevent further cuts that could lead to insecurity.
Rainer Dulger, President of the Employers' Association, has emphasized the need for a realignment of labor market policy, while Labor Minister Barbel Bas (SPD) has stated that the employment growth compared to the previous year is solely due to foreign labor. This has sparked debate about the need for more domestic employment opportunities and the role of apprenticeships in addressing youth unemployment.
There were still 182,000 unfilled apprenticeship positions to be mediated in July, and Nahles, a prominent figure, urged young people to take advantage of these opportunities. Despite the increase in applications for apprenticeship positions, with 414,000 young people applying for a position at the employment agencies since October last year, 140,000 of these young people are still without a position.
Dulger also emphasized that mediation should be a top priority on the agenda of labor market policy. Anja Piel, a board member of the DGB, has warned against further cuts in unemployment benefits, highlighting the importance of maintaining support for those who are unemployed.
Regional unemployment rates vary across Germany, with the highest rates in the city-states of Bremen (11.8%) and Berlin (10.3%), and the lowest rates in the southern states of Bavaria (4.0%) and Baden-Württemberg. The number of reported apprenticeship positions was 466,000 in July, which is 26,000 less than the previous year.
In summary, despite the increase in unemployment in July, labor market experts and economic forecasts predict that Germany's unemployment will remain below the three million unemployed threshold in 2025 and 2026, with no indication it will surpass this mark in the immediate future. The focus now shifts to addressing youth unemployment, particularly through apprenticeship opportunities, and ensuring support for those who are unemployed.
The focus on policy-and-legislation related to labor market issues has intensified, with organizations such as the DGB and the German Social Association urging the federal government to intervene and prevent further cuts. (policy-and-legislation, government)
The debate in politics surrounding Germany's unemployment rates has centered on the need for more domestic employment opportunities and the role of apprenticeships in addressing youth unemployment. (politics, employment opportunities, apprenticeships, youth unemployment)
