Slight Decline in Unemployment in May
The German Federal Employment Agency (BA) reported a decrease of 58,000 unemployed persons in May 2026, bringing the total number of unemployed to 2.95 million. The unemployment rate fell by 0.1 percentage points compared to the previous month, reaching 6.3 percent. Despite this positive development, the usual spring recovery in the labor market remained relatively weak overall. Compared to May 2025, however, unemployment was still 31,000 higher, while the unemployment rate increased by 0.1 percentage points.
Underemployment and Employment Status
Underemployment, which includes not only unemployment but also short-term incapacity for work and participation in labor market programs, decreased seasonally adjusted by 8,000 to 3.628 million people. Compared to the previous year, underemployment increased by 15,000. According to the International Labour Organization (ILO) concept, the unemployment rate stood at 3.9 percent in April 2026.
Short-Time Work Developments
In May, employers registered 26,000 employees for cyclical short-time work (Kurzarbeit). The actual number of employees receiving short-time work benefits in March 2026 was 151,000, representing a decrease of 1,000 compared to the previous month and 113,000 fewer than in March 2025.
Employment and Workforce Participation
The number of employed persons declined slightly in April, falling by a seasonally adjusted 5,000 to 45.75 million. Compared to the previous year, total employment decreased by 189,000 people. Social security-covered employment increased by 9,000 between February and March 2026 but remained 75,000 below the previous year’s level. Marginal employment declined by 40,000 to 7.51 million, including 4.03 million people working exclusively in marginal employment.
Demand for Workers Stable at a Low Level
Demand for labor stabilized at a relatively low level in May. A total of 643,000 vacancies were registered with the Federal Employment Agency, 8,000 more than one year earlier. The BA Job Index (BA-X) increased by one point to 103, placing it three points above its level from the previous year.
Unemployment Benefits and Income Support
In May 2026, approximately 1.07 million individuals received unemployment benefits, an increase of 113,000 compared to the previous year. In contrast, the number of employable recipients of the citizen’s benefit (Bürgergeld) declined by 103,000 to 3.83 million. As a result, 7.1 percent of the working-age population was dependent on income support.
Apprenticeship Market Remains Challenging
Since October 2025, around 382,000 applicants have registered with employment agencies and job centers seeking apprenticeship opportunities, representing an increase of 2 percent compared to the previous year. By May 2026, approximately 199,000 applicants had not yet secured an apprenticeship position or an alternative option.
Employers reported 396,000 apprenticeship vacancies. However, current statistics remain incomplete due to ongoing reporting system changes. Vacancy reports for April 2026 are estimated to be around 5 percent lower than during the same period last year. The apprenticeship market remains dynamic until the end of the 2025/26 counseling and placement year, and the current figures should therefore be considered preliminary.
