Unemployment rates experience a slight decrease in the spring season, marking a moderately encouraging trend.
The month of April in 2025 brought about a slight revitalization to Germany's job market, witnessing a decrease in unemployment by 36,000 individuals, bringing the total to 2.932 million. Although showing improvements, this is still 182,000 more compared to the same month in 2024 as reported by the Federal Employment Agency in Nuremberg. The unemployment rate dipped down by 0.1 percentage points to 6.3 percent compared to March. Yet, compared to the previous April, the rate increased by a marginal 0.3 percentage points.
Commenting on the situation, Andrea Nahles, chairwoman of the Federal Employment Agency, stated, "Spring revival is relatively weak this year. Unemployment and underemployment have decreased, albeit slightly, when adjusted for seasonality." However, it is worth noting that the April revival of the past two years was even weaker, with a decrease of 8,000 and 20,000 job reductions respectively.
The Current Landscape of Short-Time Work
The usage of short-time work, known as Kurzarbeit in Germany, has seen little change. Data collected from April 1 to April 24 shows that employers have reported short-time work for 37,000 individuals. Nevertheless, the actual usage of this practice remains to be determined. Recent data on short-time work uptake is only available up to February 2025. During this month, preliminary data indicates that short-time work benefits were paid out to 244,000 employees, representing a decrease of 14,000 compared to January and an increase of 43,000 compared to the same month in the previous year.
Affirmation from the Minister
Federal Minister of Labor, Hubertus Heil (SPD), views the utilization of short-time work as an indication that labor market policies are working effectively. "Our labor market remains a robust pillar in economically challenging times, providing social cohesion, despite international trade policy uncertainties. Companies and employees are making full use of the available resources: Short-time work maintains jobs, while targeted qualifications further strengthen skilled workers for the economic transformation," Heil commented. He emphasized that the importance of good work and secure employment remains vital, especially around May 1.
Employers' Perspective
Employers' Association President Rainer Dulger presents a more critical perspective. According to Dulger, the ongoing economic stagnation precludes any meaningful turnaround in the job market. The demand for labor seems to be relatively high, although it has been decreasing compared to last year. In April alone, 646,000 job openings were reported, representing a decline of 55,000 compared to the same month last year.
As for the training market, it remains unclear at this point, as the market dynamics are still shifting in April. Since October 2024, 354,000 job seekers have registered for apprenticeships, representing an increase of 12,000 compared to the same time last year. However, the number of reported training places is 25,000 lower than at the same time last year, with 430,000 training spots available.
In April 2025, overall employment in Germany shows stability at approximately 45.8 million people, after seasonal adjustments, as reported by the Federal Statistical Office. Details about the current status of short-time work were not addressed in the most recent statistical releases or the documented data reviewed. The dominant labor market trends are significant shortages in more than 70 occupations, particularly in healthcare, engineering, IT, and construction. In response, Germany has implemented new immigration pathways for skilled professionals from non-EU countries. Despite the presence of short-time work as a policy tool, its current impact on employment is minimal, indicating that the labor shortages and overall employment stability are the dominant factors shaping the German job market in April 2025.
- Despite the slight decrease in unemployment, the Federal Minister of Labor, Hubertus Heil, commended the utilization of short-time work as an indication that Germany's labor market policies are working effectively.
- Employers' Association President Rainer Dulger, however, highlighted the ongoing economic stagnation, expressing that the job market turnaround is yet to be meaningful, and short-time work usage does not seem to impact employment significantly.
