Thursday, July 2, 2026
Home Uncategorized The German Labor Market in June 2026

The German Labor Market in June 2026

9

Stable demand with slightly declining employment

In June 2026, 2.936 million people were registered as unemployed, representing a decrease of 15,000 compared with the previous month. The unemployment rate fell slightly by 0.1 percentage points to 6.2 percent. Compared with the previous year, however, the number of unemployed people increased by 22,000, while the overall rate remained stable. The unemployment rate according to the ILO definition stood at 3.7 percent in May.

Employment subject to social security contributions shows a slight downward trend: from March to April 2026, the seasonally adjusted number of employees subject to social security contributions fell by 5,000 to 34.84 million. Compared with the previous year, employment is lower by 71,000 people. Overall employment also declined by a seasonally adjusted 8,000 in May and, at 45.83 million people, is 177,000 below the previous year’s level.

Underemployment and short-time work

Underemployment, which includes not only unemployment but also people participating in labour market policy measures and those temporarily unable to work, fell by a seasonally adjusted 8,000 to 3.605 million in June. Compared with the previous year, however, it increased by 19,000.

The use of short-time work benefits continues to decline: for April 2026, cyclical short-time work was reported for 133,000 employees, 17,000 fewer than in the previous month and 101,000 fewer than one year earlier. In June, short-time work was notified for 26,000 people.

Labour demand and the training market

Demand for labour has stabilised at a low level. In June, 648,000 vacancies were registered with the Federal Employment Agency, 16,000 more than one year earlier. The BA Job Index remained unchanged at 103 points and is slightly above the previous year’s level.

Since October 2025, around 400,000 applicants have registered on the training market, an increase of one percent compared with the previous year. By June 2026, 181,000 applicants had not yet found a training position. The number of registered training positions stood at 409,000, although the statistics are currently incomplete due to system changes. For May 2026, a decline in registered training positions of around six percent is estimated. It is expected that many training contracts will still be concluded during the summer months.

Cash benefits and need for assistance

In June 2026, around 1.052 million people received unemployment benefit, 90,000 more than in the previous year. The number of employable people entitled to citizen’s benefit stood at 3.804 million, representing a decrease of 104,000 compared with the previous year. Overall, 7.0 percent of the employable population was in need of assistance.

Conclusion

In June 2026, the German labour market showed a stable but overall subdued development: unemployment declined only slightly, employment subject to social security contributions decreased, and labour demand remained constant at a low level. Short-time work continues to decline, and the training market remains active despite some uncertainties.