More people are working in Germany than ever before
Last year, 45.9 million people were employed in Germany. This means that the number of people in employment has risen to a record level. At the same time, however, the Federal Statistical Office warns of a "significant decline" in the medium term.
Employment in Germany reached a new high last year. According to the Federal Statistical Office in Wiesbaden, an annual average of 45.9 million people were employed in Germany. According to an initial estimate, the number of people in employment rose by 333,000 or 0.7 percent compared to the previous year.
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.
Most jobs are created in the service sector
In 2023, most new jobs were created in the service sector. Overall, nine out of ten of the additional employees found a job in the service sector, as the statistics office explained - their number increased by 295,000.
The sub-sector was particularly strong in public services, education and health, where 116,000 more people worked than before. The second strongest absolute increase within the service sector was recorded in the trade, transport and hospitality sector with 87,000 more 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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The Federal Statistical Office attributing the growth in employment to the immigration of foreign workers and an increase in domestic labor force participation, also predicts a significant decline in the working-age population due to demographic changes in the medium term.
The service sector, specifically public services, education, and health, witnessed a significant surge in employment, with an additional 116,000 people joining the workforce in these areas last year.
Despite a strong growth in the service sector, employment in the agriculture and fishing sector continued to decline, with fewer people employed in this sector compared to previous years.
Source: www.ntv.de
