Federal Employment Agency reports continued weak spring recovery in the labor market

Underemployment and social benefits

Compared to June 2025, the number of unemployed people nationwide was 22,000 higher. At the same time, it was 104,000 lower than a year ago, according to the data. Underemployment — which also includes participants in labor market policy measures and people on short-term sick leave — stood at 3.605 million people, 19,000 higher than a year earlier, according to BA figures. On a seasonally adjusted basis, underemployment fell in June by 8,000 people compared to the previous month.

The Federal Employment Agency also pointed out that 1.052 million people received unemployment benefits in June — 90,000 more than a year ago, according to an estimate. The number of employable Bürgergeld recipients stood at 3.804 million in June, 104,000 fewer than in the same month a year earlier. Overall, 7.0 percent of people of working age living in Germany were dependent on benefits.

Job vacancies and training market

In June, 648,000 open positions were registered with the employment agencies, 16,000 more than a year earlier. Since October 2025, 400,000 young people had registered with the employment agencies, one percent more than in the same month a year earlier. However, by June, 181,000 young people had still not found a position or an alternative to a training place. By June, 409,000 training positions had been registered.

Nahles identified the development of industry as the central risk factor. In manufacturing, more than 50,000 jobs had been lost since 2020; over the past twelve months alone, the figure was 174,000. Together with retail, industry is the largest problem factor in the labor market and a reflection of Germany's weak economic situation.

Industry and short-time work in focus

The federal government plans to cut around 15,000 jobs per month in manufacturing, according to the data. Two thirds of the currently elevated notifications of cyclical short-time work come from manufacturing. According to the latest data for April, cyclical short-time work benefits were paid for 133,000 employees. Industrial jobs are considered comparatively well paid, which means the Federal Employment Agency also faces higher unemployment benefit payments.

Retail, according to Nahles, is suffering particularly from consumer reluctance, especially due to the war in Iran and its consequences. The Institute for Employment Research (IAB) estimates that the Iran crisis has cost Germany 0.3 percentage points of growth.

Regional development in the federal states

From the federal states, the BA's regional directorates reported predominantly slightly declining figures. In Schleswig-Holstein, the number of unemployed people fell in June by around 1,100 compared with May to about 93,300; the rate dropped by 0.1 percentage points to 5.7 percent and is now at the previous year's level. „Der schleswig-holsteinische Arbeitsmarkt zeigt sich weiterhin stabil“, said the head of the Regional Directorate North, Markus Biercher.

In Mecklenburg-Western Pomerania, the unemployment rate fell in June by 0.1 points to 7.6 percent. A year ago it stood at 8.3 percent. „Der Arbeitsmarkt in Mecklenburg-Vorpommern zeigt sich trotz der anhaltenden wirtschaftlichen Herausforderungen robust“, the Regional Directorate North in Kiel stated.

In Hamburg, the number of unemployed people fell in June by 568 compared to the previous month to 93,963; the rate dropped by 0.1 points to 8.2 percent. Compared to the same month a year earlier, the number of unemployed in Hamburg was 1,700 or 2.6 percent lower.

In Lower Saxony, 270,449 people were registered as unemployed, 1,415 fewer than in May, according to the Regional Directorate Hannover. In Hesse, the regional directorate counted 208,320 unemployed in June, 352 fewer than in May; the rate fell to 5.8 percent. „Von einer Belebung sind wir derzeit weit entfernt“, said the head of the Regional Directorate Hesse, Frank Martin. Employment is rising only in some sectors, while others are under adjustment pressure and shedding workers.

Political reactions and the BA's budget

DGB board member and chair of the BA's administrative board, Anja Piel, warned against cuts at the employment administration: „Noch nie wurde in den vergangenen Krisen bei steigenden Arbeitslosenzahlen an der Arbeitsverwaltung gespart. Das darf auch diesmal nicht passieren“. Federal Labor Minister Bärbel Bas (SPD) said the economic situation remained tense and posed major challenges especially for industry.

Financially, the Federal Employment Agency is under pressure: the originally forecast budget deficit could double to around eight billion euros or more, according to BA figures. The reasons include advance payments during the coronavirus pandemic, for example for short-time work benefits, as well as rising expenditure on unemployment benefits.

Analysts and economic researchers interpret the June data as an indication of structural weaknesses. „Dies deutet darauf hin, dass wir es nicht nur mit einer vorübergehenden Wirtschaftsschwäche, sondern mit strukturellen Problemen zu tun haben“, one expert said. Even a possible easing of the global political situation would not change the economic situation of many companies in the short term; new hiring remains cautious, and job cuts continue.

The report was broadcast on 30.06.2026 on Deutschlandfunk. The June statistics were presented, as usual, on the last Tuesday of the previous month in Nuremberg; the next nationwide unemployment figures are expected at the beginning of July.