Labour market information: Germany

National Level

Germany (with 83.2 million inhabitants) is the largest economy in the European Union (EU) and, after the USA, China and Japan, is the world’s fourth largest economy. Germany is also the third-largest exporter. Germany is renowned for its major companies in the automotive, chemicals and electronics sectors. Among these, Volkswagen, Daimler, BMW (all automotive), BASF (chemicals) and Siemens (electronics) are the main global players. What is less well known is that 56.3% of the total workforce in Germany works in small and medium-sized enterprises (SMEs). SMEs in particular, for example in the mechanical engineering sector, are willing to recruit and are looking for staff.

In February 2022, 45.1 million people were in employment (+1.5% compared to the previous year). Following the slump in the first lockdown (spring 2020), covered employment has picked up again strongly.

Compared with the previous year, there was an increase in the number of covered employees in all federal states, with the highest rise in Berlin (+3.8%, in seasonally adjusted terms). The smallest increase was recorded in Thuringia (+0.7%).

Based on the entire civilian labour force, the unemployment rate in March 2022 was 5.1%. In seasonally adjusted terms, the unemployment rate has also reduced and, at 5.0%, is once again at the pre-crisis level of March 2020. Eastern Germany (6.6%) continues to be more greatly affected by unemployment than western Germany (4.8%). Over the last few years, however, the gap between these employment rates had narrowed. At federal state level, Bavaria continues to have the lowest unemployment rate, while Bremen has the highest.

In March 2022, there were 839 000 reported vacancies; this was 229 000 (38%) more than the previous March. The fall in the number of jobs due to the coronavirus outbreak has therefore been more than compensated for, with the seasonally adjusted number of jobs even reaching a peak.

Almost 191 300 cross-border commuters were working in Germany in 2019. These are foreign nationals who work in Germany but live in another country. Given its location at the heart of Europe, Germany has by far the higher number of cross-border workers, many of whom come from Poland and France.

The German labour market needs well-educated women and men – i.e. people with professional qualifications (academic studies, vocational training). There are good opportunities for foreign skilled workers in occupations that are in particularly high demand. In Germany, there is significant demand for the following occupations:

Doctors: despite good earning opportunities and high social status, there is an increasing shortage of doctors in private practices, and sometimes in clinics, especially in rural areas.
Requirements: candidates must undergo a recognition procedure, but doctors who have obtained equivalent qualifications abroad will be granted a national licence to practise as a doctor in Germany.
Nurses: there are plenty of jobs available for nurses and healthcare professionals. Qualified staff are needed in hospitals, retirement homes and other care facilities.
Requirements: anyone with a nursing qualification from their country of origin can apply for that qualification to be recognised in Germany. Medical fitness and knowledge of German are required, to either B2 or B1 level, depending on the federal state.
Engineers: as an industrial nation, Germany has plentiful career opportunities and good earning potential to offer engineers. There is a strong demand for experts in electrical and construction engineering, mechanical engineering and vehicle manufacturing. There are currently opportunities available for graduates who wish to cross over from other fields.
Requirements: anyone with a professional qualification equivalent to the corresponding German qualification is eligible to be recognised as an engineer / engineering consultant.
Life scientists and computer scientists: vacancies are also abundant in the STEM fields (science, technology, engineering and mathematics), both in the private sector and in public research institutes.
Requirements: at the Central Office for Foreign Education (ZAB), foreign STEM graduates can have their university degrees declared equivalent to German diplomas.
There is also particular demand for childcare workers in municipal and church kindergartens, drivers in freight companies and municipal institutions, chefs, food industry professionals (butchers, bakers), and agricultural workers (harvest workers).
More information can be found at: www.make-it-in-germany.com/de/jobs/gefragte-berufe/

Anyone wishing to work in Germany should either:

have a professional qualification for one of the professions in very high demand (in this case, German language skills are often of lesser importance); or
be planning to obtain a professional qualification in one of the professions in very high demand (it is possible to come to Germany to obtain qualifications. Germany has a ‘dual learning’ system where learners perform paid work while they are training, which allows them to cover some of their living costs); or
have a professional qualification for a less in-demand profession. In this case, excellent German language skills are essential to increase the likelihood of finding a job.

Links:

International Placement Service (Zentrale Auslands- und Fachvermittlung, ZAV)

www.make-it-in-germany.com

Schleswig-Holstein

Hamburg

Mecklenburg-Western Pomerania

Bremen

Lower Saxony

Saxony-Anhalt

Brandenburg

Brandenburg is a federal state in north-eastern Germany. Its territory fully encircles the national capital city of Berlin, which forms a separate federal city-state. The state capital of Brandenburg is Potsdam. Brandenburg has the second-lowest population density after Mecklenburg-Western Pomerania (85 inhabitants/km²) with a population of 2.53 million. The sparsely populated agricultural regions of Brandenburg in particular represent an attractive contrast to Berlin’s highly densely populated metropolitan area.

The fact that Brandenburg is a large state with a low population density means that there is plenty of space for business expansion, infrastructure projects, and leisure and recreation. The business hub of Brandenburg includes, among other things, the Babelsberg Film Park and the logistics centres on the outskirts of Berlin. The region is also home to global market leaders in the vehicle construction, mechanical engineering and plant construction industries. The Tesla plant has been operational since March 2022.

The unemployment rate in Brandenburg in March 2022 was 5.5% (Germany as a whole: 5.1%), a decrease of 0.9 percentage points on the previous year. Male unemployment reduced by 7 000 or 14.2%, whilst female unemployment fell by 5 300 or 14.6%.

Covered employment increased slightly compared to the previous year (as at September 2021).

The largest increase was in the transport and storage sectors, as well as in the care home and social work sectors.
The largest fall in employment was seen in the mining and quarrying sectors, as well as in other services and private households.

At 28 300, the number of vacancies reported in March 2022 is significantly higher than the pre-crisis level (22 800 in March 2020). Access to newly reported positions is higher than in the previous year. Since the start of the year, 16 300 new vacancies have been reported by employers and 13 500 have been removed.

Berlin

North Rhine-Westphalia (NRW)

Hessen

Thuringia

Saxony

Saxony is a federal state in eastern Germany. It borders the federal states of Brandenburg to the north, Saxony-Anhalt to the north-west, Thuringia to the west and Bavaria to the south-west. The federal state also shares a border with Czechia to the south and with Poland to the east. The state capital is Dresden. With a population of some 4.1 million and an area of approximately 18 400 km², Saxony is one of Germany’s smaller federal states.

Saxony has an extensive tradition as a business location, and it has long had a high-performing industry. Today, the Free State is one of the most dynamic federal states and has the highest job density in eastern Germany (excluding Berlin). Since 2000, Saxony’s economy has grown by 25.3% (as at March 2021). In 2020, due to the coronavirus pandemic, gross domestic product (GDP) in price-adjusted terms decreased compared to the previous year; the decrease was, however, lower than the German average. The main industrial sector remains the automotive industry, followed by metal production, electrical engineering/microelectronics and mechanical engineering.

The unemployment rate in Saxony in March 2022 was 5.5% (Germany as a whole: 5.1%), a decrease of 1.0 percentage points on the previous year. Male unemployment reduced by 12 900 or 16.2%, whilst female unemployment fell by 8 800 or 15.1%.

Covered employment increased compared to the previous year (as at September 2021).

The largest increase was in the real estate sector, the self-employed, scientific and technical services sector, and the health sector.
The largest fall in employment was seen in education and training and in the construction industry.

At 45 200, the number of vacancies reported in March 2022 is significantly higher than the pre-crisis level (37 000 in March 2020). Compared to the previous year, access to newly reported jobs was lower in March 2022. Since the start of the year, 24 000 new vacancies have been reported by employers and 21 700 have been removed.

Saarland

Saarland is the smallest non-city state, and with just under 1 million residents is the second-smallest federal state in Germany in terms of population. It borders Rhineland-Palatinate to the north and east, France to the south and Luxembourg to the west. The state capital is Saarbrücken. The Saar-Lor-Lux region, comprising Saarland, Lorraine and Luxembourg, is a prime cross-border commuting area. Saarland is one of the warmest regions in Germany.

Saarland relies on research competence and innovation as a driver for growth and competitiveness. It has systematically built up a strong and diverse academic and research base in recent years and has been successful in many technological fields, both nationally and internationally. Saarland-based IT, healthcare and medical technology, pharmaceutical and active substance research, nanotechnology and biotechnology, but also materials science, mechatronics and automotive and supply technology have an excellent reputation in research and teaching.

The unemployment rate in Saarland in March 2022 was 6.1% (Germany as a whole: 5.1%), a decrease of 1.1 percentage points on the previous year. Male unemployment reduced by 3 800 or 16.9%, whilst female unemployment fell by 2 500 or 15.6%.

Covered employment increased compared to the previous year (as at September 2021).

The largest increase was in the fields of public administration, defence, social insurance and extra-territorial organisations, as well as in other economic services.
The largest fall in employment was seen in the metal, electrical and steel industries, as well as in other services and private households.

At 12 100, the number of job vacancies reported in March 2022 is significantly above the pre-crisis level (8 700 in March 2020). Compared to the previous year, access to newly reported vacancies was higher in March 2022. Since the start of the year, 7 500 new vacancies have been reported by employers and 6 300 have been removed.

Rhineland-Palatinate

Rhineland-Palatinate lies in south-western Germany and is home to some 4.1 million residents. The federal state borders North Rhine-Westphalia to the north, Hessen and Baden-Württemberg to the east, the French region of Alsace to the south and the Saar-Lor-Lux region (Saarland, Lorraine and Luxembourg) to the south and west. Rhineland-Palatinate is the German state with the largest area of territory on the left bank of the Rhine. The state capital is Mainz.

Rhineland-Palatinate has one of the highest export volumes of all the federal states in Germany. Rhineland-Palatinate lies at the heart of Europe, and has borders with France, Luxembourg and Belgium. As a result of its location, this federal state is heavily focused on cross-border cooperation, such as cross-border vocational training projects and common strategies on demographic change, education policy, energy transition, healthcare or spatial development that enable cooperation across borders and encourage outreach and exchange.

The unemployment rate in Rhineland-Palatinate in March 2022 was 4.5% (Germany as a whole: 5.1%), a decrease of 0.9 percentage points on the previous year. Male unemployment reduced by 12 500 or 18.3%, whilst female unemployment fell by 9 600 or 17.8%.

Covered employment increased compared to the previous year (as at September 2021).

The largest increase was in the temporary employment sector, as well as in real estate and in self-employed/scientific/technical services.
The largest fall in employment was seen in the metal, electrical and steel industries, as well as in other services and private households.

At 45 100, the number of job vacancies reported in March 2022 is significantly above the pre-crisis level (34 700 in March 2020). Compared to the previous year, access to newly reported vacancies was higher in March 2022. Since the start of the year, 24 800 new vacancies have been reported by employers and 21 700 have been removed.

Baden-Württemberg

Bavaria

The Free State of Bavaria is geographically the largest of all the federal states, and has the second-largest population (13.15 million). The state capital is Munich. Bavaria borders Czechia to the east, Austria to the south, Baden-Württemberg and Hessen to the west, and Thuringia and Saxony to the north and north-east.

Bavaria’s economy is one of the strongest in Europe. 10 out of the 30 corporations that feature in the DAX stock index, including Siemens, Adidas and BMW, are based in Bavaria. International corporations such as Microsoft, Intel and Google have established their German headquarters and laboratories here. Many of the small and medium-sized enterprises are hidden champions and world leaders in their field. Automotive and mechanical engineering are among the strongest industries in the federal state. Key industries such as biotechnology, environmental and energy technology, and aerospace are also firmly rooted in Bavaria.

The unemployment rate in Bavaria in March 2022 was 3.0% (Germany as a whole: 5.1%), a decrease of 0.9 percentage points on the previous year. Male unemployment reduced by 40 300 or 23.6%, whilst female unemployment fell by 28 200 or 22.1%.

Covered employment increased compared to the previous year (as at September 2021).

The largest increase was in the real estate sector, in self-employed, scientific and technical services, and in the temporary employment sector.
The largest fall in employment was seen in the manufacturing and hospitality sectors.

Overall, more job vacancies are now being reported than before the COVID-19 pandemic. In March 2022, approximately 149 500 job vacancies were reported. Compared to the previous year, this represents an additional 49 600 (+50%) jobs. Employers also reported 28 900 new job vacancies, 2 500 (+9%) more than the previous year. At the same time, more vacancies were removed than a year ago.

At 149 500, the number of reported vacancies in March 2022 is significantly higher than the pre-crisis level (115 300 in March 2020). Compared to the previous year, access to newly reported vacancies was higher in March 2022. Since the start of the year, 86 900 new vacancies have been reported by employers and 77 300 have been removed.

Labour market information: Germany

National Level

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Schleswig-Holstein

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Hamburg

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Mecklenburg-Western Pomerania

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Bremen

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Lower Saxony

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Saxony-Anhalt

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Brandenburg

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Berlin

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North Rhine-Westphalia (NRW)

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Hessen

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Thuringia

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Saxony

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Saarland

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Rhineland-Palatinate

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Baden-Württemberg

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Bavaria

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