In the German state of Hesse, joblessness made a surprising surge in August 2021. Approximately 150,585 residents found themselves without work, marking a significant increase of around 4,500 from the preceding month and a notable jump of over 12,000 compared to the previous year. This alarming spike pushed the unemployment rate up to 5.7%, shattering a four-year trend that had held steady.
Head of the Frankfurt-based office for the Federal Employment Agency's regional department, Frank Martin, attributed this rise to seasonal factors. According to him, annual influxes of young job-seekers after school and vocational training coincide with businesses adopting cautious hiring strategies during the seasonal lull and adverse economic conditions.
However, the state boasted nearly 50,000 vacant positions, a fact that seems to contradict the hesitant hiring practices highlighted by Martin.
With training programs starting on August 1, more than 10,000 positions remained unfilled, leaving approximately 7,300 aspiring youths without a training spot. Martin holds optimism for the coming weeks, expecting improvements in the unoccupied training positions.
Despite the rise in unemployment, employment subject to social security contributions continued its upward trend. The estimated workforce stood at 2,763,000 for June 2021, showing a 0.9% increase compared to the previous year—outperforming the national average of 0.4%.
Personal circumstances are currently keeping me from diving into the job market, and the number of vacant positions seem to align with the season and the prevailing economic conditions, as Martin observes.
Wondering about the broader employment landscape in Germany? Here are some related articles:
[1] - Germany Unemployment Rate Rises in December [5] - German unemployment steady in February despite pandemic slowdown
Now, let's take a look at the current employment status and unemployment rate in Germany as of February 2025:
- Unemployment Rate: The seasonally adjusted unemployment rate in Germany remains at 6.2%, matching expectations and staying at its highest level since October 2020[1]. The total number of unemployed individuals rose by 5,000 to 2.886 million, which falls short of the projected rise of 15,000[1].
- Employment: The number of individuals in employment in Germany was approximately 45.6 million in January 2025, seeing a minor decrease of 9,000 (0.0%) compared to the previous month on a seasonally adjusted basis[3]. The year-on-year decrease in employment was 0.1%, or 37,000, compared to January 2024[3].
- Regional Trends: Though the national data offers a comprehensive picture, regional variations can arise. Hesse might exhibit unique employment and unemployment patterns. However, region-specific data for Hesse is not available in the sources. The structural weaknesses in specific regions, such as some regions in Eastern Germany and rural areas, have been noted, but Hesse-specific data is not available.
- Temporary Employment: The number of temporary workers in Germany decreased by 12.0% in November 2024 compared to November 2023, and by 1.25% from October 2024 to November 2024[5]. This drop in temporary employment may have implications for the overall labor market.
- Underemployment: Underemployment, which includes unemployment, labor market policies, and short-term incapacity to work, increased by 6,000 on a seasonally adjusted basis in January 2025, reaching 3,714,000. This figure represents a 107,000 increase from a year ago[5].
In summary, though the national unemployment rate sits at 6.2%, the employment landscape shows a downturn in temporary employment and an increase in underemployment. Initial data for regions such as Hesse is not available to assess more specific trends.
