Sachsen-Anhalt labor market faces employment and unemployment shifts

The labor market in Sachsen-Anhalt is facing significant challenges, with projections and recent data indicating a decline in employment and working volume. According to the Institute for Employment Research (IAB), social security-covered employment in the region is expected to decrease by 0.6 percent by 2027, potentially resulting in 4,600 fewer jobs in a medium-value scenario. Unemployment is also projected to rise by 1.4 percent, reaching approximately 91,000 individuals by 2027.

Economic experts attribute these trends to a combination of difficult economic conditions and demographic shifts. Data from the State Statistical Office shows that in 2025, the total economic working volume in Sachsen-Anhalt fell by 2.0 percent compared to the previous year. This decline was driven by a reduction in total working hours across all economic sectors, including agriculture, manufacturing, and services. The decrease in working volume was partly influenced by an increase in part-time employment alongside a reduction in full-time positions.