German job market: Unemployment likely to hit 3 million people this summer

Germany’s unemployment rate fell slightly in June, but the number of unemployed people is still likely to hit 3 million this summer. The Federal Employment Agency says "companies' willingness to hire remains low". 

German unemployment rate fell slightly in June 2025

In June 2025, around 2,91 million people in Germany were unemployed, according to the most recent figures from the Federal Employment Agency. Figures are down slightly compared to May 2025, but the agency expects the number of unemployed people in Germany to reach 3 million this summer.

The current figure of 2,91 million people unemployed amounts to around 6,2 percent of the population. The German unemployment rate rose from 6 percent to 6,4 percent in January and has been between 6,2 percent and 6,4 percent since. Generally speaking, an unemployment rate between 5 and 6 percent is considered high.

Having low unemployment is a key sign of a healthy labour market. A country is considered to have “full employment” when unemployment rates are between 2 and 4 percent, since it is basically impossible to reach 0 percent unemployment. This is because many people officially out of work are not actively looking for a job, including children, pensioners, or full-time caregivers.

“The [German] labour market continues to show signs of economic weakness. Employment continues to develop unfavourably,” Andrea Nahles, head of the Federal Employment Agency, explained in the organisation's press release. “Companies’ willingness to hire remains low,” Nahles continued, “Employment subject to social insurance contributions is practically no longer growing.”

Which jobs are hiring in Germany?

According to Virginia Sondergeld, an economist working at the online job portal Indeed, the German job market is seeing a decline in job vacancies across many industries.

“In areas such as marketing, project management and IT, the number of job vacancies has fallen particularly sharply. Industry, long the backbone of the German economy, is also weakening,” Sondergeld explained.

But Germany needs people nonetheless. Figures from the German Economic Institute (IW) suggest that, unless more efforts are made to welcome migrant workers, the country will be short of 728.000 workers by 2027.

A 2024 study by Indeed found that engineers, retail workers, customer service workers, healthcare workers, education employees and business developers were among the most sought-after employees in Germany.