Germany has reached a historic level of employment, with 46.1 million people employed in 2024, according to preliminary estimates from the Federal Statistical Office. This marks the highest number of employed individuals since the reunification of Germany in 1990.
The new record surpasses the previous high set in 2023 by 0.2%, or 72,000 people, despite the German economy contracting for the second consecutive year. “Except for the COVID-19 year of 2020, the number of employed individuals has continuously increased since 2006,” the office stated. However, it noted that the growth rate has significantly slowed since 2022.
The increase in employment has been driven primarily by the migration of foreign workers and a rise in labor force participation among the local population. These factors have offset the demographic challenges posed by an aging population and the growing number of retirees from the baby boomer generation.
Despite these positive employment figures, companies in Germany are still grappling with high costs for energy, labor, materials, and excessive bureaucracy.
The service sector played a major role in the employment surge, adding 153,000 new jobs or 0.4%, bringing total employment in the sector to 34.8 million. Meanwhile, employment in the manufacturing and construction sectors saw declines.
