Despite a weaker economy, Germany’s labor market showed remarkable stability in 2025, with total employment remaining nearly unchanged. According to the Federal Statistical Office (Destatis), losses in industrial and construction jobs were largely offset by gains in the services sector, maintaining overall employment levels at around 46 million people, only 5,000 fewer than in 2024.
This marks a continuation of a generally upward trend in employment since 2006, except for the dip during the 2020 COVID-19 crisis. The year 2024 had seen record employment figures, the highest since German reunification in 1990.
Employment in the industrial sector fell sharply by 143,000, bringing the total number of industrial workers to 7.9 million. The construction sector also saw a reduction of 23,000 jobs, totaling 2.6 million workers.
Agriculture, forestry, and fisheries continued their long-term decline, losing 3,000 jobs, reaching 562,000. These declines reflect structural shifts in the economy, with fewer workers employed in traditional production and primary sectors.
The services sector, which now employs 75.9% of Germany’s workforce, was the key driver preventing a larger overall decline. Within this sector:
However, not all services grew. Sectors sensitive to economic fluctuations, such as temporary employment, lost 64,000 jobs, while information and communication employment declined by 10,000. Jobs in trade, transport, and hospitality fell marginally by 15,000 or 0.1%.
Two major factors shaped Germany’s employment trends in 2025: economic slowdown and demographic changes. The retirement of baby boomers left a gap that younger workers could not fully fill, reducing growth potential.
On the positive side, net immigration of foreign workers and higher workforce participation among older workers and women helped stabilize employment. These demographic and participation trends partially offset declines in industrial and primary sector employment.
The year 2025 illustrates a continuing shift in Germany’s labor market. While production, construction, and agricultural jobs fell, the public sector, healthcare, and finance recorded substantial gains. The results underscore the growing dominance of service-oriented employment in Germany’s economy, reflecting both economic transformation and societal changes.
Despite weak economic growth, Germany’s workforce showed resilience, with structural shifts in employment reflecting demographic pressures, sectoral changes, and increased labor participation in key services.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
