Despite Germany’s economic troubles the number of people in work is increasing, but there are major regional differences. We look at which areas are seeing the most jobs growth – and where labour markets are shrinking.
Germany’s job market is growing slightly – but not everywhere.
New figures show Hamburg is leading the country with the fastest employment growth in 2024, while several eastern and smaller western states are losing workers.
It comes as demographics and migration reshape regional labour markets across the country.
A report compiled by federal and state analysts shows the total number of people in work across Germany went up by 0.1 percent to 45.99 million in 2024 compared to the previous year, with a total of 10 German states seeing an increase in employment growth.
Hamburg recorded the strongest growth, up 0.8 percent to 1.36 million workers last year.
The state of Hesse, where the financial hub of Frankfurt is located, followed with a 0.5 percent rise, while employment growth in Bavaria, Berlin and Schleswig-Holstein went up by 0.3 percent.
Meanwhile, Bremen saw an increase of 0.2 percent in the local jobs market. Baden-Württemberg, Lower Saxony, North Rhine-Westphalia and Brandenburg were in line with the national average with a 0.1 percent increase in the number of people employed.
In contrast, the western state of Saarland and eastern Germany’s Mecklenburg-Western Pomerania saw the steepest declines, with 0.9 percent less people in work in 2024 compared to the previous year. A total of 521,800 people were in work in Saarland last year, and 752,200 were employed in Mecklenburg-Western Pomerania.
Employment in Thuringia was down 0.8 percent in 2024, while the employment markets in Saxony and Saxony-Anhalt slipped by 0.3 percent.
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Where in Germany are most people in work?
North Rhine-Westphalia – the most populous state – remains Germany’s jobs heavyweight with 9.82 million people in work last year, according to data.
The western state is followed by Bavaria, with 7.87 million registered workers, and Baden-Württemberg (6.42 million).
Experts say the changes in labour market growth are not only due to fluctuations in local labour markets and the size of the states: migration, demographic trends, improved childcare facilities and growth in part-time work also play a role.
Ageing workers are one of the most pressing worries. As The Local has been reporting, Germany’s labour market and social security system are facing troubled times as more of the baby boomer generation retires. Experts estimate around 400,000 skilled foreign workers are needed each year to fill vacancies.
READ ALSO: Germany’s skilled shortage intensifies across industries
How Germany’s labour market has changed in 20 years
The current developments may seem small, but looking back at the figures from 20 years ago, there are some stark differences.
Berlin is at the forefront, where the number of people in employment last year was more than 40 percent higher than in 2004, according to the figures. Analysts say the massive hike can be attributed to the hundreds of thousands of people – many from abroad – who moved to the city during that time.
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Hamburg takes second place with an increase of 30 percent in 20 years, while Bavaria saw a 23 percent rise of people in employment during this time. Again, the population in these areas has increased.
Over the 20-year period, Saxony-Anhalt and Thuringia show the weakest performance with slight declines in their labour markets. However, both states have also recorded a drop in population during this period.
READ ALSO: How Germany’s population has changed 35 years after reunification
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: thelocal.de
