The average unemployment rate was 5.7 percent in Germany in 2023. Since 2005, the rate of unemployment has generally been declining. Since 2019 it has increased as an effect of the COVID-19 pandemic.
Unemployment in Germany and comparison with other countries
Germany has a comparatively low unemployment rate compared to its European neighbors, and they are expected to stay at around three percent over the next few years. This is a result of the damage the economy suffered during the COVID-19 pandemic. During the lockdown, most businesses were closed, and many companies lost revenue meaning employees were let go. It is also possible that higher unemployment figures will continue into 2023 because of inflation and rising energy prices. There is also a higher unemployment rate among men than there is among women.
Social support
Social support is money paid out to those who are unable to work for some reason, its purpose is to protect those who are most vulnerable. The status of being unemployed is defined as when an employed person is laid off, fired, or quits his work and is still looking for a job, this is what qualifies someone to receive a citizens allowance (Bürgergeld) in Germany. The payments are only made if you are unemployed and worked for the last 12 months. Otherwise, benefits are received in the form of Arbeitslosengeld II, also called Hartz IV, which distributes social payments to people without an income who cannot work to make a living. Since January 2023 though, Arbeitlosengeld has been replaced by Bürgergeld, since this is a new transition, it is still possible that people will still refer to the benefits as Arbeitlosengeld or Hartz IV.
Annual average unemployment rate in Germany from 2005 to 2023
Figures preceding 2019 originate from earlier publications of the Federal Employment Agency.
The unemployment rate shows the share of unemployed in the total number of civilian employees and is a guiding confirmation of the state of the employment market and the job situation, as well as being a part of unemployment statistics. The Federal Employment Agency defines unemployment as follows: "Unemployed is that person who does not have an occupation (less than 15 weekly hours), is looking for a job, is a the disposal of the job market and is registered as unemployed in a employment agency or a basic provision body. By this definition not all those in need of help and able to work are to be counted as unemployed." Thus, a person is not automatically unemployed just because he or she is not working.
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Bundesagentur für Arbeit. (January 3, 2024). Annual average unemployment rate in Germany from 2005 to 2023 [Graph]. In Statista. Retrieved September 01, 2024, from https://www.statista.com/statistics/227005/unemployment-rate-in-germany/
Bundesagentur für Arbeit. "Annual average unemployment rate in Germany from 2005 to 2023." Chart. January 3, 2024. Statista. Accessed September 01, 2024. https://www.statista.com/statistics/227005/unemployment-rate-in-germany/
Bundesagentur für Arbeit. (2024). Annual average unemployment rate in Germany from 2005 to 2023. Statista. Statista Inc.. Accessed: September 01, 2024. https://www.statista.com/statistics/227005/unemployment-rate-in-germany/
Bundesagentur für Arbeit. "Annual Average Unemployment Rate in Germany from 2005 to 2023." Statista, Statista Inc., 3 Jan 2024, https://www.statista.com/statistics/227005/unemployment-rate-in-germany/
Bundesagentur für Arbeit, Annual average unemployment rate in Germany from 2005 to 2023 Statista, https://www.statista.com/statistics/227005/unemployment-rate-in-germany/ (last visited September 01, 2024)
Annual average unemployment rate in Germany from 2005 to 2023 [Graph], Bundesagentur für Arbeit, January 3, 2024. [Online]. Available: https://www.statista.com/statistics/227005/unemployment-rate-in-germany/