The German job market has shown a slight increase in employment, despite persistent economic difficulties, according to data from the Federal Statistical Office. The increase is modest, with a 0.1 percent rise.
In the second quarter of the year, approximately 46.1 million people were employed in Germany, as reported on Friday. Adjusted for seasonal fluctuations, this represents an increase of 54,000 people, or 0.1 percent, compared to the first quarter. However, this growth rate has slowed; in the first three months, the increase was 64,000 people.
Without seasonal adjustment, the number of employed individuals rose by 249,000, or 0.5 percent, in the spring. Statisticians noted, “An increase in employment in the second quarter of the year is seasonally common due to the general upturn in external occupations in spring.” However, this spring’s growth was more subdued compared to the average of 295,000 observed in 2022 and 2023.
Services sector sees significant growth
The services sector saw notable growth from April to June, with an increase of 229,000 people, or 0.7 percent, compared to the second quarter of 2023. The public services, education, and health sector alone accounted for 199,000 new jobs, or a 1.7 percent increase. “Therefore, the overall economic employment gain can almost entirely be attributed to this sector,” the report stated.
Employment in the financial and insurance services sector rose by 13,000 people, or 1.2 percent, followed by information and communication with 10,000 new jobs, or 0.6 percent. In contrast, the trade, transport, and hospitality sectors experienced a minimal decline of 1,000 people, the first decrease since the third quarter of 2021 and the subsequent recovery from the COVID-19 pandemic.
German economy shrinks in second quarter
The decline in the manufacturing sector continued into the spring, with a decrease of 44,000 people, or 0.5 percent. Employment in the construction sector fell by 21,000 people, or 0.8 percent. Conversely, agriculture, forestry, and fishing saw an increase of 3,000 people, or 0.5 percent.
Overall, the number of employees rose by 196,000, or 0.5 percent, to 42.3 million. However, the number of self-employed individuals, including assisting family members, continued to decline, falling by 29,000 people, or 0.8 percent, to 3.8 million.
Germany’s gross domestic product shrank by 0.1 percent in the second quarter, following a 0.2 percent growth in the first three months of the year. Two consecutive quarters of decline are indicative of a technical recession.
