Business
German job market continues losing steam, labour institute says
Published by Jessica Weisman-Pitts
Posted on December 5, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
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Published by Jessica Weisman-Pitts
Posted on December 5, 2024
2 min readLast updated: January 28, 2026
BERLIN (Reuters) – Job vacancies in Germany have been on a downward trend for two years, showing a decline in labour demand that reflects the economic slowdown in Europe’s biggest economy, according to data from an economic institute released on Thursday.
In the third quarter, there were 1.28 million job vacancies, down from a record 1.98 million two years ago and falling for the seventh consecutive quarter, the Institute for Employment Research (IAB) said in the presentation of quarterly numbers.
“Overall, the labour market has cooled significantly compared to the previous year,” said IAB labour market researcher Alexander Kubis.
In 2024, Germany is set to be the worst performer among the Group of Seven (G7) rich democracies for a second consecutive year.
Compared to the second quarter, the number of vacancies fell by 58,100 or around 4%, the IAB said. Compared to the third quarter of 2023, the decline was greater with a drop of 446,500 or around 26%.
Despite the slowdown in labour demand, the seasonally adjusted unemployment rate remained stable at 6.1% in November.
Due to the subdued economic outlook, Germany’s number of unemployed is expected to continue to increase next year, raising the unemployment rate.
Unemployment is seen edging higher this year to 6.0% from 5.7% in 2023, according to government forecasts.
(Reporting by Holger Hansen, writing by Maria Martinez, editing by Rachel More)
Unemployment refers to the situation when individuals who are capable of working are unable to find a job. It is often measured as a percentage of the total labor force.
The labour market is the supply and demand for labor, where employers seek to hire workers and individuals seek jobs. It plays a crucial role in the economy.
Economic growth is the increase in the production of goods and services in an economy over time, typically measured by the rise in Gross Domestic Product (GDP).
Financial stability refers to a condition where the financial system operates effectively, allowing for the smooth functioning of financial markets and institutions without major disruptions.
Job vacancies are positions that are available for hire and are unfilled. They indicate the demand for labor in the economy.
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