High Unemployment Persists in Saxony - Grim Job Outlook - Unemployment rates in Saxony remain elevated, with a dismal forecast ahead
Saxony's job market is currently experiencing a challenging environment, with rising unemployment and significant job losses, particularly in its industrial cities. According to the latest figures, released on the 12th of June, the number of unemployed individuals in Saxony stands at approximately 147,000.
In contrast, regions such as Saxon Switzerland, Vogtland County, and Görlitz have seen a significant decrease in unemployment. The economic focus of these regions is typically more tourism-oriented or centred around small businesses, which may face different labor market dynamics compared to the industrial cities.
Cities like Chemnitz, Leipzig, and Zwickau, known for their car manufacturing and suppliers, are directly affected by the severe contraction in the German industrial sector. Over 100,000 jobs have been lost within a year by early 2025, with automotive-related cuts from companies like Volkswagen, Bosch, and ZF Friedrichshafen accounting for a large share. This has led to an unemployment rate likely to be at or above the national average of 6.3%.
Meanwhile, more rural regions like Saxon Switzerland and Vogtland may see slower economic growth and employment challenges linked to tourism and small-scale manufacturing or service sectors. The service sector insolvencies and economic slowdown nationwide suggest these regions might see rising underemployment and unemployment as well, although without the direct industrial cuts as prominent as in industrial hubs.
Michaela Ungethüm, director of the Saxony regional office of the Federal Employment Agency, has stated that the economic situation is a major factor in the high unemployment rate. She expects a seasonal increase in unemployment due to the completion of apprenticeships and the summer break of many Saxon companies.
In terms of employment figures, the number of socially insured employed persons in Saxony decreased to around 1.629 million in April 2025, a decrease of 700 compared to March 2025 and around 10,900 compared to April 2024. However, the unemployment rate in Saxony remains at 6.8%. It's worth noting that this figure represents an increase of around 10,000 compared to the same month last year.
In the first half of 2025, a total of 35,657 new job vacancies were reported, the lowest figure since data has been available and is 6.2% below the level of the previous year.
Currently, no newer data is available for the current employment situation in Saxony. The ongoing economic pressures, such as weak European demand, high energy costs, and global competition, continue to impact the region, making the future of Saxony's job market uncertain.
**Table: Key Aspects of Saxony's Employment Situation**
| Region / City | Economic Focus | Recent Trend in Employment | Unemployment Context | |---------------------|------------------------|--------------------------------------------------|-------------------------------------| | Chemnitz, Leipzig, Zwickau | Automotive, Manufacturing | Significant job cuts (auto sector job losses nationally 45,400) | Likely unemployment at/above national avg (~6.3%) due to industrial downturn | | Saxon Switzerland | Tourism, Small business | Impacted by service sector insolvencies and economic slowdown | Potentially rising unemployment in services, less direct industrial impact | | Vogtland | Small manufacturing, services | Similar challenges to Saxon Switzerland, service sector affected | Service sector job losses and insolvencies contribute to underemployment |
The community is considering implementing a revised policy to address the rising unemployment and job losses in the industrial cities of Saxony, such as Chemnitz, Leipzig, and Zwickau, as a result of the contraction in the German industrial sector. The policy may include investing in vocational training to equip the unemployed with skills needed for the tourism-oriented and small-business sectors, which are the economic focuses of regions like Saxon Switzerland and Vogtland, where unemployment has decreased despite the nationwide economic slowdown.
With the ongoing uncertainty in the job market, the need for accessible and effective vocational training across all regions of Saxony becomes increasingly important to prepare unemployed individuals for various job opportunities, whether it be in the industrial cities or the more rural areas.
