12/26/2025December 26, 2025Germany’s job market stalls as hiring falls to record low
The chances of unemployed people in Germany finding a job have reached a record low, according to the head of the Federal Employment Agency, Andrea Nahles.
“We have an indicator that shows how high the probability is for unemployed people to find a job again. The value is usually around seven, but it is now at 5.7 — lower than ever before,” Nahles said
The labor market has been “like a plank for months,” she told the news portal , with “no momentum coming in.”
With regard to the planned reform of unemployment welfare benefits, which would in future reintroduce the so-called placement priority for unemployed people, Nahles criticized the proposal.
“From my point of view, this rule can really become problematic if attention is not paid to the qualification profile of each individual unemployed person” she said. The welfare benefits debate must “not ignore the labor market,” Nahles demanded.
In mid-December, the cabinet decided to replace unemployment benefits after only three years with a new basic income system that stipulates harsher rules and strict sanctions.
According to Nahles, well-qualified workers still have the best chances on the labor market, although in her view no group of employees is any longer safe from losing their jobs.
Prospects are currently poor for people entering the job market. “We have placed as few young people into apprenticeships as at any time in the past 25 years,” Nahles said, referring to 2025. She advised new job entrants not to fixate on a single career choice or job location.
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