Germany’s Jobless Figures Swell by 77,000 as Long-Term Unemployment Hits a Decade High
Published on 07/26/2026 at 22:50 | Redaktion boerse-global.de
The German labor market is showing clear signs of strain, with the number of unemployed people rising by 77,000 to reach 2.98 million. The share of long-term joblessness has climbed to 35.9 percent, an increase of 0.8 percentage points that underscores a deepening structural problem. Employment levels dipped slightly to 45.86 million, while the number of people in so-called “Aufstocker” jobs—workers who supplement low wages with state benefits—fell by 35,400 to 780,200.
Industrial Job Losses Accelerate
Germany’s manufacturing sector is shedding workers at an alarming rate. According to the president of the BDI industry federation, the sector is losing approximately 15,000 jobs each month. Data from the Federal Employment Agency confirms the trend: over the past twelve months, 177,000 positions in the manufacturing industry have disappeared. A study by the German Economic Institute (IW) reports that industrial employment has now dropped to its lowest level in a decade.
The decline in hiring is mirrored by a sharp contraction in job advertisements. The Indeed labor market index fell to 106 points in the second quarter of 2026, a drop of 3.9 percent compared to the previous quarter. The total number of job postings has hit a five-year low, sitting 39 percent below the record high reached in spring 2022. Only six out of 38 occupational groups saw an increase in vacancies. The healthcare sector stood out, with notable gains in dentistry (+25.3 percent), therapy (+3.6 percent), and medical technology (+3.6 percent). Seasonal summer job offerings also remained stable.
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Young Graduates Feel the Squeeze
The academic job market is undergoing a significant shift. Analysis by DZ Bank shows that the number of unemployed university graduates under the age of 30 more than doubled between 2022 and 2025. The overall unemployment rate among academics has risen by nearly half.
Artificial intelligence is being cited as a key driver of this change. AI tools are increasingly replacing traditional entry-level roles in areas such as research, content creation, and programming. While demand for university graduates is declining, the shortage of skilled workers in fields requiring vocational training is becoming more acute.
Apprenticeships and the Broader Economy
The vocational training system is also facing headwinds. The director of the Institute for Employment Research (IAB) expects fewer than 470,000 new apprenticeship contracts to be signed in 2026. Current figures put the number at 468,000, with a take-up rate of 79 percent. On a more positive note, the FRAX index—a measure of labor market activity—rose to 108.2 points in the first quarter of 2026, up 2.2 points from the same period last year.
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Germany’s broader economic outlook remains subdued. Gross domestic product (GDP) is forecast to grow by just 0.5 percent in 2026. With inflation running at 2.9 percent, wage growth is being held in check. Between March and June, nominal wage growth slowed to 2.8 percent, translating into a real wage increase of only 0.2 to 0.4 percent once inflation is factored in.
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