Key Takeaways
- North Rhine-Westphalia, Bavaria, and Baden-Württemberg account for over one-third of all employed persons in Germany. This concentration reflects population size and economic scale.
- Across Germany, most employed people work as employees. In every federal state, they account for around 90% or more of the workforce.
- Self-employment exists, but it rarely exceeds 10% of workers in any state. This is mainly driven by an industry mix where most jobs are designed as employee roles.
Employment by Federal State in Germany
| Federal state | Population (In Millions) | ||
|---|---|---|---|
| Total employed | Employees | Self-employed | |
| Nordrhein-Westfalen | 9.84 | 9.09 (92.4%) | 0.75 (7.6%) |
| Bayern | 7.89 | 7.21 (91.4%) | 0.68 (8.6%) |
| Baden-Württemberg | 6.43 | 5.93 (92.2%) | 0.50 (7.8%) |
| Niedersachsen | 4.24 | 3.91 (92.0%) | 0.34 (8.0%) |
| Hessen | 3.62 | 3.33 (92.0%) | 0.29 (8.0%) |
| Berlin | 2.20 | 1.98 (90.3%) | 0.21 (9.7%) |
| Sachsen | 2.07 | 1.89 (91.5%) | 0.18 (8.5%) |
| Rheinland-Pfalz | 2.06 | 1.89 (91.5%) | 0.18 (8.5%) |
| Schleswig-Holstein | 1.48 | 1.34 (90.2%) | 0.15 (9.8%) |
| Hamburg | 1.36 | 1.26 (92.4%) | 0.10 (7.6%) |
| Brandenburg | 1.15 | 1.03 (89.9%) | 0.12 (10.1%) |
| Thüringen | 1.02 | 0.93 (91.4%) | 0.09 (8.6%) |
| Sachsen-Anhalt | 0.99 | 0.92 (92.6%) | 0.07 (7.4%) |
| Mecklenburg-Vorpommern | 0.76 | 0.69 (91.1%) | 0.07 (8.9%) |
| Saarland | 0.52 | 0.49 (93.0%) | 0.04 (7.0%) |
| Bremen | 0.44 | 0.42 (94.3%) | 0.03 (5.7%) |
Source: Destatis
Figures use the domestic concept. This counts people in the state where their job is located, regardless of where they live. As a result, commuter-heavy states such as Hamburg, Berlin, and Bremen show higher employment figures than their resident workforce would suggest.
“Persons in employment” are people who work as employees or self-employed persons for pay, profit, or family gain. The category also counts people temporarily away from their job, for example, due to illness or parental leave.
“Employees” work for an employer under a contract, formal or informal, and receive wages or a salary in return.
“Self-employed persons” own or co-own the business they work in, including freelancers and unpaid family workers in a family business. It excludes employees who only have independent decision-making power within their own role, such as a branch manager.
Employment in Germany is not evenly spread across the country. Instead, a large share of employed persons is concentrated in a small number of federal states.
North Rhine-Westphalia, Bavaria, and Baden-Württemberg together account for well over one-third of all employed persons in Germany.
This concentration in employment is not accidental. It mainly reflects four structural factors:
- Population size. More residents mean a larger workforce
- Industrial density. Many firms operating close to each other
- Headquarters of large companies, which anchor thousands of direct and indirect jobs
- Long-established manufacturing and service clusters
These same factors also explain why economic growth and output tend to cluster geographically.
Where are fast-growing jobs concentrated in Germany? ->
Smaller states like Mecklenburg-Vorpommern, Saarland, or Bremen aren’t doing something different. They simply have smaller populations and fewer large employers.
Why do some states face higher unemployment rates? ->
Employees Are the Dominant Form of Work in Germany
Across all 16 federal states, employees dominate the labor market, regardless of state size.
In every state, around 9 out of 10 working people are employees. No state falls below 90% employee share. The remainder are self-employed persons.
That system strongly favors standard employment through:
- mandatory social insurance tied to payroll jobs
- labor protections tied to employee status
- wages and working conditions negotiated collectively
- prevalence of public sector jobs and large private employers
As a result, states differ in how many people work, not in how work is structured.
Self-Employment Exists, but It Is Secondary
Self-employment varies across states, but only within narrow limits.
Even in states with the highest shares, self-employed workers account for around 1 in 10 workers or less.
- Highest shares: Brandenburg (10.1%), Schleswig-Holstein (9.8%), Berlin (9.7%)
- Lowest shares: Bremen (5.7%), Saarland (7%)
These differences are usually explained by sector mix, not by a stronger or weaker entrepreneurship culture.
Higher self-employment is more common in sectors such as:
- agriculture
- crafts and skilled trades
- freelancers without employees
- small family-run businesses
What are the forms of businesses in Germany ->
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Health Insurance for Self-Employed & Freelancers ->
States with lower self-employment, such as Bremen, are dominated by large firms, ports, logistics hubs, and public administration.
In these environments, most jobs come with fixed hours, employment contracts, and payroll systems.
Self-employed work is not discouraged. It is simply uncommon because the jobs are designed as employee roles.
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