German unemployment dips to 2.994 million in September 2026 with 6.4% rate

National unemployment trends

The number of unemployed people in Germany fell below three million in September 2026, reaching 2.994 million. According to data presented in Nuremberg by the Federal Employment Agency (BA), this represented a monthly decrease of 67,000 people compared to August 2026. However, total unemployment stood 40,000 higher than in September 2025. After seasonal adjustments, the unadjusted seasonal drop converted into an increase of 12,000 unemployed individuals.

The national unemployment rate dropped 0.1 percentage points from August to 6.4%, though it remained 0.1 percentage points above the level recorded twelve months earlier. Federal Employment Agency head Andrea Nahles described the start of the seasonal autumn revival as lacking momentum.

The economic improvement is not yet reaching the labor market.

Broader employment indicators and vacancies

Broader labor metrics showed divergent trends across social support and training schemes. Underemployment, which includes individuals participating in labor policy programs or short-term sick leave alongside the registered unemployed, reached 3.615 million people in September 2026. On a seasonally adjusted basis, underemployment decreased by 7,000 individuals compared to August, though it was 25,000 higher than in September 2025.

The number of employable recipients of basic security (Grundsicherung) stood at 3.704 million, reflecting a reduction of 145,000 compared to September 2025. Employer demand for new workers remained subdued, with 660,000 registered job openings reported nationwide. The agency noted that demand had stabilized at a low level following an extended decline.

Structural challenges and labor supply

Economic research institutes project moderate growth for the wider economy, but agency researchers do not expect a definitive labor market turnaround in the fourth quarter of 2026. Nahles observed that gross domestic product growth typically disconnects from labor dynamics during transitions, creating lags when entering and leaving economic downturns.

Demographic changes continue to shrink the domestic labor pool as baby boomer cohorts reach retirement age, while foreign arrivals have slowed. Nahles called for increased and regulated immigration to address structural shortages, emphasizing that demographic shifts present long-term operational challenges across sectors.

If you look at the next five years, for me the shortage of skilled workers is still the bigger problem than the current situation on the labor market.

Regional developments in eastern Germany

Regional figures reflected local seasonal changes, with data measured on 14 September 2026 showing mixed conditions. In Saxony-Anhalt, unemployment decreased by 2,700 people (3%) compared to August to reach nearly 88,000, though this was almost 1,200 people higher than in September 2025. The regional unemployment rate fell to 8.0%, down from 8.2% in August but up from 7.8% in September 2025.

Regional director Markus Behrens reported that youth intake into apprenticeships drove the seasonal improvement, accompanied by integration gains among foreign workers. Local employers posted 3,500 open positions in September, an increase of 17.1% (over 500 positions) compared to the previous year, bringing total new vacancies since January to 30,160.

The hoped-for autumn revival has arrived in the labor market in Saxony-Anhalt.