Self-Employment and Employment in Germany Over Time

Key Takeaways

• Employment expanded strongly over time. The number of employees increased from 19.38 million in 1957 to over 36 million in 2019 as Germany’s economy shifted toward service and professional sectors.
• The number of employed females grew much faster than that of their male counterparts. The number of female employees nearly tripled from 6.56 million to 17.73 million, raising their share from 33.8% to 48.3%. This also shows that the employed workforce moved closer to gender balance over time.
• Female employment grew as service-sector jobs expanded, higher education access improved, family-support policies developed, and reunification reinforced higher female participation.
• Self-employment changed more gradually but became more balanced. Women’s share rose from 21.5% to 33.0%, supported by the growth of service-based and solo businesses and greater access to higher education.

Self-employed and employed persons in Germany

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Germany’s labour market has changed significantly since the 1950s. Two long-term developments stand out.

First, employment expanded rapidly, while self-employment changed more gradually.
Second, the gender balance of the workforce shifted steadily over time.

In 1957, the labour market was largely male-dominated. Women accounted for 6.56 million employees, representing 33.8% of the employed workforce, while men held nearly two-thirds of employee positions.

Self-employment showed an even larger gender gap. Of the 3.32 million self-employed workers, men represented 78.5%, while women accounted for only 21.5%. In other words, roughly four out of five self-employed workers were men.

This pattern reflected the structure of the post-war economy. Much of Germany’s employment was concentrated in industrial production, agriculture, and craft trades, sectors where male employment was traditionally higher.

Economic transformation reshaped the workforce

From the 1970s onward, Germany’s economy gradually shifted toward service and knowledge-based sectors.

The expansion of fields such as healthcare, education, administration, and professional services created millions of new salaried jobs that relied more on formal qualifications than manual industrial work.

At the same time, access to higher education and vocational training expanded, enabling more women to enter skilled professions. Policies supporting work–family balance, including childcare expansion and parental leave, also made it easier for many women to participate in the labour market.

Together, these developments contributed to a steady rise in female employment. By 2019, Germany recorded 17.73 million female employees, increasing women’s share of employees to 48.3%.

German reunification further reinforced this trend. Female employment rates had historically been higher in East Germany, where full-time work among women was more common. After reunification, the integration of eastern and western labour markets contributed to the continued rise in female employment.

Self-employment becomes more balanced

Self-employment followed a different trajectory.

While the total number of self-employed workers changed only moderately, the gender balance was more noticeable.

In 1957, Germany recorded 2.60 million male self-employed workers compared with 0.71 million women. This meant that men outnumbered women by more than three to one.

By 2019, the gap had narrowed considerably:

• Men: 2.65 million (67.0%)
• Women: 1.31 million (33.0%)

Several structural developments contributed to this shift.

First, the growing importance of service-based professions created new forms of self-employment. Many activities in consulting, creative industries, and professional services require less start-up capital and smaller business structures, which helped expand solo self-employment.

Second, labour market reforms in the early 2000s, including the Hartz reforms and changes to craft regulations, lowered barriers to starting a business and encouraged entrepreneurship from unemployment.

Finally, self-employment can offer greater flexibility in working hours, which can make it easier to combine work and family responsibilities. This flexibility became increasingly important as female labour participation increased.

These changes gradually reshaped Germany’s labour market.

Employment became the dominant form of work, and the workforce moved steadily closer to gender parity.

In 1957, men accounted for 66.2% of employees, while women represented 33.8%.

By 2019, the balance had narrowed to 51.7% men and 48.3% women.

Self-employment also became more balanced over time, although it remained more male-dominated than employment overall.

Over six decades, Germany’s labour market shifted from an economy centred on industrial production and family businesses toward one that is increasingly driven by services and professional work.

As these changes unfolded, female employment expanded steadily, bringing the workforce much closer to gender balance.