Germany’s labor market showed no sign of improvement in April 2026. The Bundesagentur für Arbeit (BA) reported 3.008 million unemployed.
BA Chairwoman Andrea Nahles stated: “A trend reversal in the labor market is still not in sight.“
In unadjusted terms, unemployment fell by 13,000 in April. This is due to seasonal spring hiring in construction, agriculture, and outdoor sectors.
But once seasonal hiring is removed from the picture, unemployment actually rose by 20,000 on an adjusted basis. This means the underlying job trend is deteriorating.
Compared to April 2025, unemployment is up by 77,000. The unemployment rate increased by 0.1 percentage points year-on-year. This is the trend over the past three years.
Total underemployment (Unterbeschäftigung) stands at 3.665 million. This includes people in training schemes, subsidized jobs, other active labor market measures, and the formally unemployed.
Job vacancies are shrinking in Germany
Registered job vacancies fell to 641,000 in April 2026. This is 5,000 less than April 2025.
The combination of rising unemployment and shrinking vacancies signals the following.
- Companies are not backfilling departures.
- Companies are growing headcount.
The ifo Employment Barometer fell to 91.3 in April 2026, down from 93.4 in March. This is the lowest reading since May 2020.
Four in ten industrial companies plan additional layoffs in 2026.
Short-time work (Kurzarbeit) down from last year leading to layoffs
Short-time work (Kurzarbeit) is the state-subsidized scheme that lets companies reduce hours rather than make redundancies. The number of people in short-time work has reduced.
156,000 workers have short-time work in April 2026. This is 114,000 fewer than April 2025.
Many companies that were in Kurzarbeit a year ago have since undergone actual layoffs rather than recover. New applications of short-time work for 28,000 people were filed in just the first 26 days of April alone.
Statistics around unemployment benefits and Grundsicherung recipients
- Social security-based employment fell by 16,000 on a seasonally adjusted basis between January and February 2026.
- Total recipients of Arbeitslosengeld (unemployment benefit): 1.070 million. This is 93,000 more than in April 2025.
- Total recipients of Bürgergeld: 3.826 million. This is down 125,000 year-on-year. It’s partly because of stricter eligibility criteria under the new Grundsicherung reform.
Why the labor market in Germany is not recovering
The industrial sector, which forms the backbone of Germany’s export-oriented economy, has shed jobs.
Over 125,000 industrial positions were cut in the first nine months of 2025. Automotive companies led those cuts:
- Volkswagen reduced headcount by 35,000
- Bosch by 22,000
- ThyssenKrupp by 11,000.
Moreover, companies remain cautious about new hires.
The mismatch between open vacancies and available workers makes things even worse. Many of the 641,000 listed vacancies are in skilled trades, IT, and healthcare sectors.
Germany has a severe shortage of qualified candidates. Meanwhile, large numbers of the long-term unemployed lack the qualifications for those roles.
More than 1 million of Germany’s unemployed are Langzeitarbeitslose (long-term unemployed, meaning jobless for more than one year). That is over 36 percent of all unemployed people.
Around one in three long-term unemployed do not hold German citizenship.
What this means if you are job-hunting in Germany
The job market in Germany is difficult right now. Vacancies are down, competition for open positions has intensified, and employers are cautious.
That said, skilled shortages remain acute in specific areas — healthcare, engineering, IT, skilled trades, and logistics. If your background is in one of these sectors, demand for your profile is real despite the overall slowdown.
The training market is also under pressure.
Of 357,000 apprenticeship applications filed since October 2025, 211,000 applicants remain without a position or alternative as of April 2026.
NOTE: If you are on a work visa tied to a specific employer and you lose your job, your right to remain in Germany may be affected. You typically have a grace period to find new employment, but the timeline depends on your visa type. Consult an immigration lawyer promptly if your employment situation changes.
