Germany sees rise in long-term unemployment

Long-term unemployment is rising in Germany as the economy enters a period of weakness. Data from the Federal Employment Agency indicates that approximately 1.4 million people have been receiving basic income benefits for at least five years, representing about two out of every five benefit recipients.

Regional data shows the highest proportions of long-term recipients in Berlin (45%) and Bremen (43%). The trend is also affecting younger demographics; nearly 200,000 individuals under the age of 25 are classified as long-term unemployed, with 76% of those under 25 lacking a professional qualification.

Additionally, workers aged 50 and older face significant challenges in re-entering the workforce. Analysis of labor market data from 2023 to 2025 suggests that individuals in the 55-to-64 age group experience longer periods of unemployment compared to younger cohorts. While 73% of those aged 25-54 find new employment, only 57% of those aged 55-64 find work by January 2026, often leading to lower-paid positions or a permanent loss of career prospects.