The latest data from the German labor market for February 2026 paints a picture of a two-track economy. On one hand, declining inflation and nominal wage increases have led to a noticeable rise in consumer purchasing power, as recorded in Bavaria, Saxony, and Thuringia. On the other hand, the number of unemployed nationwide remains above the 3 million threshold, and the unemployment rate has stabilized at 6.3 percent.
Greater Purchasing Power
Wages in many federal states, including Bavaria and Lower Saxony, are rising faster than prices, improving the financial situation of workers.
Unemployment Unchanged
The nationwide unemployment rate in February was 6.3 percent, and the number of unemployed still exceeds the psychological barrier of 3 million.
Uneven Recovery
While the number of job vacancies is rising in Thuringia, the market in Saxony remains stagnant at a relatively high level.
The German economy in February 2026 shows signs of stabilization, though it grapples with structural problems. According to published data, real wages in Germany have risen again, an effect of fading inflation and the implementation of earlier collective agreements. In regions such as Lower Saxony, Bavaria, and Thuringia, the pace of wage growth has outpaced the rise in prices of goods and services, effectively increasing the purchasing power of households. This is a positive trend, as it stimulates domestic consumption, which has been one of the weaker links in German GDP. The labor market situation, however, remains tense. The Federal Employment Agency reported that the number of unemployed still exceeds 3 million people, a result of weak economic performance in recent quarters. The unemployment rate remained unchanged at 6.3 percent nationwide. Although some cities, such as Krefeld or Hilden, recorded slight decreases in the number of unemployed, the overall market picture indicates a lack of dynamism. Staff shortages are still visible in specific sectors; an interesting phenomenon is that in North Rhine-Westphalia, many job offers come from the Bundeswehr. The German economic model for decades relied on moderate wage growth and strong exports. However, since the energy crisis in 2022 and the subsequent high inflation, workers began demanding higher compensation, leading to historic series of strikes in key sectors. Simultaneously, state authorities increased pressure on combating irregularities. For example, in the Heinsberg district, customs officials conducted mass inspections in local businesses aimed at detecting undeclared work. Such actions are meant to support the legal labor market in the face of stagnation, i.e., economic stagnation combined with high business operating costs. Experts point out that without a rebound in industrial investment, real wage growth alone may not be enough for a lasting economic recovery in Germany in the coming months. „Der Arbeitsmarkt hat sich im Februar als stabil erwiesen, aber die wirtschaftliche Schwäche fordert weiterhin ihren Tribut.” (The labor market proved stable in February, but economic weakness continues to take its toll.) — Federal Employment Agency
Perspektywy mediów: Liberal-leaning media primarily emphasize the success of workers and the rise in purchasing power as a signal of emerging from the crisis. Business and conservative-oriented services focus on the lack of dynamism in the labor market and the wage risk for enterprises.