Number of Unemployed Falls Below Three Million Again - Germany's Labor Market Mixed in September 2025: Unemployment Down, Short-Time Work Stable, Vacancies Fall
Germany's labor market showed mixed signals in September 2025. While the number of unemployed people decreased and the unemployment rate fell slightly, short-time work benefits and job vacancies also saw changes.
Preliminary data revealed that short-time work benefits were paid to 199,000 employees in July 2025, a decrease of 4,000 from June but an increase of 5,000 compared to July 2024. This indicates a slight reduction in the use of short-time work schemes.
In September, the number of unemployed people in Germany dropped by 70,000 to 2.955 million. This decline was reflected in the unemployment rate, which fell by 0.1 points to 6.3 percent. However, this rate is 0.3 points higher than in September 2024, suggesting a year-on-year increase in unemployment.
Short-time work remained relatively stable, with 36,000 people registered for short-time work from September 1 to September 24. Meanwhile, the demand for workers by companies decreased, with 630,000 job vacancies reported in September, 66,000 fewer than in the same month last year. Despite this, the number of unemployed people in Germany is 148,000 more than a year ago.
While the unemployment rate and the number of unemployed people decreased in September 2025, the demand for workers by companies also fell, and the unemployment rate remains higher than a year ago. The labor market continues to face challenges, with efforts to strengthen labor market support and respond to demand for employment services ongoing.
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