Destatis 2026 Data: German Employment Shrinks as Industrial Sectors Bleed Jobs
Germany’s employment contraction deepened during the first quarter of 2026 as heavy losses in manufacturing and trade overshadowed steady growth in public services.
Data released by the Federal Statistical Office (Destatis) reveals that around 45.6 million people held jobs in Germany during the first quarter. After adjusting for seasonal variations, employment fell by 61,000 people, or 0.1%, compared to the final quarter of 2025. This marks the third consecutive quarter of seasonally adjusted declines, confirming a prolonged downward trend in the German labor market.
Without seasonal adjustments, total employment plummeted by 486,000 positions—a 1.1% drop compared to the previous quarter. While winter job losses are common at the start of the year, this winter contraction exceeded the 2023–2025 seasonal average by more than 100,000 workers. Compared to the first quarter of 2025, overall employment shrank by 157,000 jobs, representing a year-on-year decline of 0.3%.
A stark divide emerged between the service sector and the rest of the economy. Non-service sectors bore the brunt of the downturn, bleeding 202,000 jobs—a sharp 1.8% drop. The manufacturing sector alone lost 171,000 workers, continuing its severe downward spiral. Construction employment also slid by 27,000 jobs, while agriculture dipped by 4,000.
Conversely, the broader service sector expanded by 45,000 positions. Public services, education, and healthcare anchored this growth, adding 181,000 employees. Financial and insurance services grew by 13,000 roles, and miscellaneous service industries added 21,000. However, these gains could not offset heavy losses in other service areas. The trade, transport, and hospitality sectors shed 81,000 jobs, business services dropped 72,000 positions, and the information and communication sector fell by 24,000.
The downturn affected both salaried employees and entrepreneurs. The total number of employees fell by 120,000 to 42 million, driven by dwindling social security positions and fewer marginal low-wage jobs. At the same time, the self-employed population contracted by 37,000, falling to 3.6 million.
Despite fewer people working, individual workloads increased. According to the Institute for Employment Research (IAB), the average time worked per employee rose by 0.3% to 344.2 hours. Consequently, the economy’s total work volume held steady at 15.7 billion hours, matching the previous year’s level.