In Germany, the number of civil servants, judges, and soldiers in state service rose to approximately 1.96 million as of June 30, 2024. This was reported by the Federal Statistical Office. Over a ten-year period, this represents an increase of 5.8 percent. At the same time, the public sector as a whole is expanding to 5.38 million employees. This trend coincides with a weak economy, in which many companies are cutting jobs or postponing new hires. This creates a striking contrast between the state and the private sector. (welt: 05.05.26)
More Civil Servants Despite Weak Economy
The public sector continues to grow. The economy, however, is losing momentum. The industrial, construction, and retail sectors, in particular, are cutting jobs. Many businesses are responding in this way to high costs, weak demand, and a reluctance to invest.
In contrast, the state is expanding its workforce. Schools and security agencies, in particular, account for the bulk of this increase. Approximately 35.6 percent of public servants work in the education sector. Furthermore, police and security services account for around 19.1 percent of the workforce. This structure reflects clear political priorities.
Federal States Employ the Largest Share of Staff
The federal states employ the largest segment of public servants; approximately 70 percent work at the state level. The federal government accounts for about 19 percent, while municipalities employ just under 10 percent. This distribution mirrors the respective jurisdictional responsibilities for schools and police forces.
Many federal states rely on career civil servants within the education sector. While this provides the state with planning certainty, it simultaneously creates long-term pension obligations. These financial burdens will impact future budgets. Consequently, the issue of public sector pensions is gaining increasing significance.
Private Sector Sheds Jobs While the State Continues to Grow
The contrast with the private sector is stark. In many industries, companies are eliminating more jobs than they are creating. The manufacturing sector, in particular, is reporting job losses. At the same time, the willingness to make new hires is declining. This trend weakens private-sector value creation.
Conversely, the state is increasing its headcount. The number of employees in the public service—specifically those under standard employment contracts—has actually risen even more sharply than the number of career civil servants. Over a ten-year period, this figure saw an increase of more than 22 percent. As a result, employment continues to shift further toward the public sector.
Cost Risk Rises with Every New Cohort
In the short term, increased staffing levels enhance administrative efficiency. At the same time, however, recurring expenditures rise. Civil servants’ salaries place an immediate strain on budgets, whereas pension obligations take effect later. This combination renders this trend a highly volatile issue from a fiscal policy perspective.
This development coincides with already strained public budgets. State and municipal governments face the triple challenge of investing, saving, and covering personnel costs. Concurrently, the economy is losing momentum. Consequently, the risk is growing that the state will increase its spending while its tax base simultaneously weakens.