German Labor Market

Employment in Germany

Despite the economic effects of the world financial crisis the German Labor Market still remains in a stabile state. In 2008 40.35 million of the 82.13 people in Germany including 4.7 million self-employed business people were employed. 29.27 Million worked in the service industries, 10.22 million in the industrial sector, 860,000 were employed in agricultural professions. 3.13 million did not find a suitable job, which means the unemployment rate fell from 9 percent in 2007 to 7.8 percent in 2008.

Approximately 500,000 job offers were forwarded to the local employment agencies in 2008. There is a strong demand for specialists in the engineering fields as well as skilled personnel in the health and social service sector.

In 2007, 10.4 percent of the workforce had academic degrees, 63.2 percent were skilled workers who finished the German dual vocational training. Only 10.9 percent worked without specific professional qualifications. For more information on professional qualifications and the German educational system please refer to our chapter on professional qualifications.

Two decades after the reunification there is still a difference between the Western and Eastern German labor market: 14.7 percent in the new federal states were unemployed in 2008, whereas the rate in the remaining states was 7.2 percent. Furthermore, the wages in the East are significantly lower than in Western Germany and are heavily subsidized. For further details on employment incentives please refer to our relevant facts & figures.

Statistical data on the development of the German labor market is available on the websites of the Federal Statistical Office and the Institute of Employment Research. You may also refer to the monthly reports of the Federal Employment Office.  Details on the specific situation in the Federal States and regions of Germany can be found in the brochure ''Mobility across Europe - Your Job in Germany'' which was published by the Central Placement Office (ZAV), the international branch of the Federal Employment Office.