Employment at a new high in 2023: 45.9 million people in work

Employment at a new high in 2023: 45.9 million people in work

One reason for the increase in employment in 2023 was the immigration of foreign workers, according to the statistics office. In addition, there was an increase in the labor force participation of the domestic population. These two growth impulses therefore outweighed the dampening effects of demographic change on the labor market - the statisticians expect demographic developments to lead to a significant decline in the working-age population in the medium term.

In 2020, the coronavirus crisis ended the 14-year rise in the number of people in employment and led to a decline of 0.8%. After the pandemic, employment initially increased only slightly in 2021, but then rose sharply in 2022.

In 2023, most new jobs were created in the service sector, particularly in public services, education and healthcare. Overall, nine out of ten of the additional employees found a job in the service sectors, as the statistics office explained - their number increased by 295,000.

The second strongest absolute increase was recorded in the trade, transport and hospitality sector with 87,000 people in employment. Employment in this sector had fallen significantly during the pandemic. In 2023, however, it was still below the pre-crisis level of 2019. The number of people in employment in agriculture and fishing fell last year - a trend that has been continuing for years.

The workforce includes employees and the self-employed. The number of employees subject to social security contributions and marginal employees increased by 0.9% to 42.1 million. The number of self-employed persons, on the other hand, continued to fall by 30,000 to 3.9 million. The number has been shrinking for twelve years, according to the statisticians.

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1. According to Destatis, the German statistics office, the labor market reached its highest level in 2023 with 45.9 million people in gainful employment.
2. The 45.9 million people in employment in 2023 represented a significant increase from the 2020 level, which was impacted by the coronavirus crisis.
3. The increase in employment in 2023 was largely due to two factors: an increase in the labor force participation of the domestic population and immigration of foreign workers.
4. The statistics office, Destatis, predicts that demographic change will lead to a significant decline in the working-age population in the medium term, but this was not enough to offset the growth impulses in 2023.
5. In 2023, the majority of the new jobs were created in the service sector, with nine out of ten additional employees finding work there.
6. The second strongest absolute increase in employment was recorded in the trade, transport, and hospitality sector, which had been significantly impacted by the pandemic.
7. Despite the increases in employment in 2022 and 2023, the number of people in employment in agriculture and fishing continued to decline, a trend that has been ongoing for years.
8. The labor market growth in 2023 came as a relief after the coronavirus crisis caused a decline in employment in 2020, with the highest level in employment expected to be reached in 2023 in Wiesbaden.

Source: www.stern.de