Germany's Unemployment Rises to 6.4% in July as Labour Market Softens
Germany's seasonally adjusted unemployment rate stood at 6.4% in July, up by 0.2 percentage points from June, according to the Federal Employment Agency (Bundesagentur für Arbeit). The number of unemployed people reached 3,007,200 in July, increasing by 71,350 from June and by 27,710 compared to July 2025.
Germany's labour market continues to weaken as the summer season traditionally brings higher unemployment. The seasonally adjusted unemployment rate rose to 6.4% in July, up 0.2 percentage points from the previous month, reflecting ongoing softness in hiring across sectors.
Unemployment in Germany has been rising continuously for four years, a trend driven by broader economic headwinds including weak exports, rising protectionism, and high domestic energy costs. A hiring freeze is spreading across manufacturing, autos, and white-collar roles in 2026, with major employers from Volkswagen to Deutsche Bank pulling back on requisitions.
Key Metrics
- 3.01 million unemployed people in July 2026, up 71,350 from June
- The underemployment rate remained at 7.6%, with total underemployed people rising to 3.65 million
For expats and job seekers in Germany, this shift means the labour market is becoming more competitive, especially for generalist roles. It is still a good time to find a job if you work in shortage occupations like healthcare, skilled trades, or specialized IT, with in-demand skills, German B2+, and flexibility on location. However, positions in automotive manufacturing and office administration are facing stiffer competition. Those on temporary contracts (Zeitarbeit) or short-time work (Kurzarbeit) should be prepared for potential transitions—companies are increasingly using internal mobility rather than external hiring.
Sources
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