TDespite the economic downturn, the number of employees in Germany rose to a record level last year. On average, around 45.9 million people were employed, as the Federal Statistical Office announced on Tuesday based on preliminary calculations. “That was more than ever since German unification in 1990,” it said.
The old record from 2022 was exceeded by 0.7 percent or 333,000 people – although, according to leading institutes, Europe's largest economy shrank last year. In 2020, the Corona crisis ended the increase in the number of employed people that had previously lasted over 14 years and led to a decline of 361,000, and things have been looking up again since then.
“One reason for the increase in employment in 2023 was the immigration of foreign workers,” said the statistics office. In addition, there was an increased labor force participation of the domestic population. “These two growth impulses outweighed the dampening effects of demographic change on the labor market, which will lead to a significant decline in the working-age population in the medium term,” emphasized the statistics office.
Nine out of ten of the additional employees in 2023 found a job in the service sectors. These recorded an increase of a total of 295,000 people or 0.9 percent to around 34.6 million. The largest absolute increase was in public service providers, education and health, with an increase of 116,000 employees or 1 percent. In the manufacturing sector (excluding construction), the number of employed people rose slightly by 25,000 or 0.3 percent to around 8.1 million. In the construction industry there was an increase of 15,000 employees or 0.6 percent to around 2.6 million. In the agriculture, forestry and fishing sectors, however, 2,000 fewer people were employed than in 2022, which corresponds to a decline of 0.4 percent to 555,000.
The number of employees was crucial for the overall positive development: it grew by 363,000 or 0.9 percent to 42.1 million in 2023. “For the self-employed, including helping family members, the downward trend that has been going on for twelve years continued in 2023,” it said. Their number fell by 30,000 to 3.9 million (minus 0.8 percent).
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