Unemployment Rises in July Due to Seasonal Factors
In July 2026, the number of unemployed people in Germany rose significantly. According to the Federal Employment Agency (BA), unemployment increased by 71,000 to a total of 3,007,000 people. Germany’s unemployment rate therefore rose by 0.2 percentage points to 6.4 percent. Compared with the previous year, the number of unemployed people is 28,000 higher, while the unemployment rate has increased by 0.1 percentage points. This development is mainly attributed to seasonal effects.
Underemployment and ILO Unemployment
Underemployment, which includes unemployment as well as short-term incapacity for work and labour market policy programmes, remained unchanged in July after seasonal adjustment. At 3.645 million people, however, it is 28,000 higher than in the same period of the previous year. The unemployment rate based on the ILO concept stood at 4.0 percent in June, presenting a slightly different picture from the standard unemployment rate.
Employment and Short-Time Work
The number of people in employment fell by 23,000 in June after seasonal adjustment and, at 45.71 million, is 225,000 below the previous year’s level. Employment subject to social security contributions decreased by 12,000 from April to May and, at 34.83 million employees, is also below the previous year’s figure. Marginal employment fell by 57,000 to 7.59 million in May.
In the area of short-time work, notifications of temporary economic work stoppages affecting 25,000 people were submitted in July. The actual use of short-time work benefits amounted to 126,000 employees in May, representing a decline compared with both the previous month and the previous year.
Demand for Labour Remains Weak
Demand for labour remains subdued. In July, 653,000 job vacancies were registered with the Federal Employment Agency. Although this was 25,000 more than in the previous year, the overall development remains moderate. The BA Job Index (BA-X) remained unchanged at 103 points in July, four points above the previous year’s level.
Benefits and the Vocational Training Market
In July, around 1.108 million people received unemployment benefits, an increase of 107,000 compared with the previous year. By contrast, the number of employable people entitled to citizens’ benefit fell by 121,000 to 3.775 million, representing 6.9 percent of the employable population.
On the vocational training market, a total of 418,000 applicants had registered for a vocational training position since October 2025, slightly more than in the previous year. By July, 126,000 had been able to start vocational training, 11,000 fewer than in the same period of the previous year. At the same time, 162,000 vocational training positions remain unfilled out of a total of 437,000 registered positions. The vocational training market remains active, with further placements expected, particularly during the summer months.
Source: Federal Employment Agency
