German retail sector loses 4,000 jobs per month

The German retail sector is experiencing a significant decline in employment, losing approximately 4,000 jobs per month over the last twelve months. According to data from the Federal Employment Agency cited by the German Retail Association (HDE), while total employment in the sector remains above three million, the overall trend is downward.

In Berlin specifically, the retail sector has lost an average of more than 140 jobs per month. Data shows that total employment in the capital decreased by 809 socially insured positions over the past year, while the number of minijobs fell by 912, resulting in a total loss of 1,721 employment relationships.

The HDE identifies rising labor costs as the primary driver of this contraction. Key factors cited include increasing social security contributions, rising bureaucracy and regulatory costs, and the scheduled increase of the minimum wage to 14.60 euros per hour at the start of the year. The association has also expressed concern regarding the rising costs associated with minijobs, which they describe as operationally vital for covering peak and off-peak hours.