Unemployment Figures for October 2026
Slight Improvement in Unemployment Despite Weak Labour Demand
The Federal Employment Agency (BA) reported a moderate decline in unemployment in October 2026, with the number of unemployed people falling by 40,000 to a total of 2.955 million. The unemployment rate decreased by 0.1 percentage points to 6.3%. Despite this improvement, the number of unemployed people was still 44,000 higher than a year earlier, while the unemployment rate increased slightly by 0.1 percentage points year-on-year. Seasonally adjusted figures even indicate a slight increase in unemployment compared to the previous month.
Underemployment and ILO Unemployment
Underemployment, which includes not only registered unemployment but also people temporarily unable to work and those participating in labour market policy programmes, decreased by 9,000 on a seasonally adjusted basis. However, at 3.592 million, it remained 28,000 above the previous year’s level. According to the International Labour Organization (ILO) definition, the unemployment rate stood at 4.1% in September, presenting a somewhat different picture of unemployment compared to the BA statistics.
Short-Time Work Remains Relevant
In October, employers submitted notifications of cyclical short-time work for 22,000 employees. The actual number of employees receiving short-time work benefits stood at 98,000 in August 2026, representing a decrease of 20,000 compared to the previous month and 66,000 compared to a year earlier. Despite the declining figures, the level of short-time work remains elevated by longer-term historical standards.
Trends in Employment and Jobs Subject to Social Security Contributions
The number of employed persons decreased slightly by 3,000 on a seasonally adjusted basis in September, reaching 45.77 million. This was 211,000 below the previous year’s figure. Employment subject to social security contributions increased by 14,000 on a seasonally adjusted basis in August but, at 34.87 million employees, remained 45,000 below the level recorded a year earlier. Marginal employment (mini-jobs) declined by 56,000 year-on-year to 7.57 million people.
Labour Demand Remains Weak
Demand for labour continues to be subdued. In October, 654,000 job vacancies were registered with the BA, representing an increase of 31,000 compared to the previous year. The BA Job Vacancy Index (BA-X) fell by one point to 102 but remained four points higher than a year earlier. This suggests a slight improvement in recruitment demand, although overall demand for workers remains weak.
Despite a slight easing of unemployment in October 2026, the German labour market remains under pressure amid challenging economic conditions. Unemployment has increased year-on-year, while demand for labour remains subdued. Short-time work continues to be used, although to a decreasing extent.
Source: Federal Employment Agency (Bundesagentur für Arbeit)
