The official unemployment figures in Germany paint a distorted picture. Many unemployed people do not appear in the statistics. Although the Federal Employment Agency collects extensive data, a large proportion of the unemployed are not officially classified as unemployed. This means that the true number of unemployed is significantly higher than the published rate suggests (noz: 14.08.25).
Difference between official definition and everyday understanding
For most people, “unemployed” means not having a job and not pursuing any training. However, according to Social Security Code III, only those who meet four conditions count: currently without employment, looking for a job subject to social insurance contributions, available for placement, and registered as unemployed with the Employment Agency. In addition, they must not be participating in any active labor market policy measures, such as job application training.
Another controversial issue remains: anyone over the age of 58 who receives citizen’s income and has not received a job offer for twelve months is excluded from the statistics – provided that this situation existed before 2022. Despite the abolition of the regulation, those affected did not return to the official unemployment records.
Those who remain unemployed but are not counted as unemployed
In March 2025, the Federal Employment Agency reported just under three million registered unemployed. In addition, there are people in training programs or with long-term illnesses who are considered “underemployed.” This group includes approximately 731,000 people who are not listed as unemployed.
In addition, more than 408,000 citizens receiving welfare benefits are not in gainful employment because they are tied to raising children, providing care, or running a household. In such cases, the authorities consider gainful employment to be unreasonable. Over 60,000 other people fall under the special regulation for those over 58 years of age.
The true scale of unemployment
Adding up all the groups paints a clear picture: around 1.204 million people of working age do not have a job but are not counted as unemployed. Together with the officially registered unemployed, this amounts to just under 4.2 million people out of work. This corresponds to a rate of 9.1 percent—around 30 percent higher than the official rate of 6.4 percent.
A spokesperson for the Federal Employment Agency emphasizes: “The unemployed represent quite well the number of people who could start work tomorrow.” Employers with job vacancies often consider this figure to be more relevant, even though many people are thus excluded from the statistics.
Different measurement methods obscure the picture
The definition has a decisive impact on the rate. The International Labor Organization (ILO) sets the threshold for employment at just one hour per week. As a result, the ILO unemployment rates calculated by Eurostat and the Federal Statistical Office are only 3.6 percent.
Such differences show that official unemployment statistics only reflect part of the reality. Anyone who wants to get a complete picture of the labor market must look beyond the published figures.