German Labor Market Witnessed Highest Employment in 2016


The year 2016 has been incredibly successful for the German labor market, since it experienced best results since the country’s reunification. It has been the only year since 1991, when the number of unemployed people fell to less than 2.7 million in the country of over 80.62 million people. Despite a huge inflow of immigrants who come to the country due to stagnation in their countries (especially from the Southern Europe) and a large wave of asylum-seekers, the German labor market seems to be capable to deal with such a number of arrivals.

According to the statistics of the Federal Employment Agency, the country ended its year with a number of 2.691 million unemployed people, which is 104,000 people lower than in 2015. Moreover, the Federal Employment Agency also reported that this state institution ended 2016 with a surplus of more than 5.4 billion Euros.

Even though the statistics shows that the number of unemployed Germans rose in the last month of the year by 36,000 people, letting the employment indicator reach the mark of 5.1%. Yet, it can be explained by seasonal fluctuations, since it has been for more than two decades that unemployment grows in December. If one looks carefully at the figures, however, one will notice that the number of unemployed people that were registered in December 2016 fell by 17,000 from the December 2015.

german job market

The Federal Agency for Employment stated that the market still has demand on many high-qualified workers

Frank-Jurgen Weise, a director of the Federal Agency for Employment, said that “it is a good development that we were observing at the end of the year. Even though the growth of employment has been sluggish since summer, the situation drastically improved by the end of the year. This shows us that the German labor market is able to offer lots of vacancies to new employees and there is still a high demand for new workers.”

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Valid Research Marktforschung GmbH, a government administration company, has carried out a study upon the request of EY, a consultancy, regarding how the Germans feel about their work. The research found that the majority of German citizens does not feel that their workplaces are being threatened, given the indicator of 9 out 10 Germans being sure of their workplaces secured. According to the study, 67% of them answered they think that their workplaces are “very safe”, whereas around 26% of respondents said that their workplaces are “safe enough” and are not threatened.

Once the statistics has been published, it became clear for all analysts that the German labor market is still booming. In the past year, the number of employees in the country has reached the all-time high 43.4 million workers. At the same time, an increase in the number of employed Germans from January to December was equal to 425,000, thus making the growth of employment to be 1% annually. That is the highest rate of employment growth since the country’s reunification in 1989.

Without any doubt, the recently published statistics has shattered forecasts of skeptical analysts who predicted a sharp fall in the employment, and this can prompt further waves of immigrants coming to the country.


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