The situation on the German labor market in February 2026 remains difficult. The Federal Employment Agency reported that the number of unemployed persons remained above the psychological threshold of three million, with an unemployment rate of 6.3 percent. Although slight improvements were noted in some regions, such as Thuringia and selected districts of North Rhine-Westphalia, the overall trend points to weakening economic momentum and wage pressure.
Three Million Threshold Exceeded
The number of unemployed in Germany remained above 3 million persons, a result of the ongoing economic downturn.
Loud Wage Protests in Hesse
The start of wage negotiations for state employees was preceded by demonstrations using saws and whistles.
Fight Against Undeclared Work
Customs officials increased the intensity of inspections at companies in the north and west of the country, detecting numerous abuses.
The latest data from the German labor market for February 2026 paints a picture of an economy in persistent stagnation. The Federal Employment Agency announced that the number of registered unemployed persons still exceeds three million, a result of weak economic conditions affecting key industrial sectors. The national unemployment rate remained unchanged compared to the previous month, holding at 6.3 percent. Experts indicate that the market is not showing the typical spring revival for this period, suggesting deeper structural problems than just seasonal fluctuations. Regional analysis, however, shows some variation. In Thuringia, an increase in job offers was observed, which may herald improvement in the coming months. Conversely, in Saxony, unemployment remains at a relatively high level, and in Hesse, the start of wage negotiations for public sector workers was met with loud protests. Union members, demanding higher wages, used unusual demonstration tools, including power saws and whistles, to emphasize the seriousness of their demands in the face of rising living costs. The German economic model, based on strong industry and a stable labor market, is currently undergoing a transformation forced by high energy prices and digitalization. Historically, exceeding the three million unemployed threshold has always been a signal for German governments to introduce structural reforms.Simultaneously with the unemployment data, customs authorities intensified workplace inspections, focusing on combating undeclared work. In Schleswig-Holstein and the Heinsberg district, a significant increase in the number of inspected businesses was recorded. These actions aim not only to protect the social security system but also to ensure fair competition among legally operating companies. In North Rhine-Westphalia, a noticeable trend is the growing role of the Bundeswehr as a stable employer offering an increasing number of job vacancies. „Der Arbeitsmarkt hat sich im Februar als stabil erwiesen, aber die wirtschaftliche Schwäche fordert ihren Tribut.” (The labor market proved stable in February, but the economic weakness is taking its toll.) — Federal Employment AgencyThe situation in individual cities, such as Krefeld, where the unemployment rate fell to 10.9 percent, shows local successes in labor market activation. Nevertheless, the nationwide upward trend on an annual basis remains a fact, and pressure for wage increases during ongoing negotiations in Hesse may further complicate the fight against inflation. The lack of a clear growth impulse leads analysts to predict a difficult half-year for the German economy, requiring coordination of fiscal and monetary policy.