Published: 22.12.2021
Author:Michalina Sielewicz
Michalina Sielewicz
22.12.2021
Blog EWL | News

German Federal Statistical Office reports employment growth in the 3rd quarter

Hired temporary workers

According to preliminary calculations of the Federal Statistical Office employment in Germany in the 3rd quarter of 2021 is up by 0,4% on the previous quarter (seasonally adjusted) and up by 0.6% on the same quarter of the previous year.

In Q3 2021, there were about 45.1 million people employed in Germany. This number increased by 169,000 (+0.4%) on the previous quarter. Q2 2021 growth was 93,000 (+0.2%).

Positive news from the German labour market

Without seasonal adjustment, the increase on Q2 2021 was even greater, namely 327,000 (+0.7%). The upturn in 2021 was higher than the relevant average of the three pre-crisis years 2017 to 2019 (223,000; +0.5%).

Further positive news is that in Q3 2021 the number of employees increased by 267,000 (+0.6%) compared to Q3 2020. A slight increase occurred in the 2nd quarter (+22,000), with an employment decrease in Q1 by 1.5% compared to the previous year.

This development can be explained by the collapse in employment numbers in 2020, when measures to contain the coronavirus pandemic negatively impacted the labour market. However, there is now a clear upward trend. Compared with the previous year, employment in Q3 2021 increased even more than in Q4 2019 (the last quarter before the crisis), namely by 0.7% (+314,000).

The Federal Statistical Office emphasized that efforts to contain the coronavirus pandemic also led to increased uncertainty in estimating the number of people working. The massively increased number of jobs with reduced hours of employment have no effect on the number of employed as short-time work is still counted as employment regardless of its extent.

Increase in services, decline in trade, transportation and hospitality

Looking at Q3 2021, the service industries are primarily responsible for the increase in the number of employed people compared to the corresponding quarter of the previous year. The largest increase was in public services, education and health care (261,000; +2.3%), followed by business services (115,000; +1.9%), such as employment and leasing agencies. In contrast, the largest number of job losses were recorded in trade, transport and hospitality (106,000; -0.7%).

The number of people employed in industry (except construction) decreased in Q3 this year compared to the previous year (46,000; -0.6%). However, the construction industry recorded a growth (32,000; +1.2%). Employment was down in agriculture, forestry and fishing by 22,000 people (-3.7%).

According to Eurostat data of 17 August 2021, employment (calculated using harmonized methodology) increased on average more in the 27 Member States of the European Union (EU) and the euro area than in Germany compared to the same period last year. The increase was 0.6% for the EU and 0.5% for the euro area.

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