Record Employment Growth in Germany's Service Sector

In 2024, Germany witnessed an impressive rise in employment, reaching an unprecedented 46.1 million workers. This growth, however, was confined to the service sectors, particularly the public domain.

The increase, amounting to 0.2% from the previous year, marks the highest employment figures since 1990, showcasing a notable shift towards service-oriented jobs. Despite the backdrop of an economic crisis, the resilience of the service sector stands out as a beacon of stability.

Nevertheless, the momentum observed since 2006 has diminished significantly, especially since mid-2022, indicating a potential slowdown in growth. Looking ahead to 2025, projections appear less optimistic, hinting at possible challenges in sustaining this upward trend.

Meanwhile, the financial landscape in Germany has also evolved, with total personal wealth surpassing 9 trillion euros, bolstered by substantial gains in stock markets and high savings rates. The DZ Bank forecasts continued wealth growth, albeit at a slower pace, reflecting an economic environment characterized by increased volatility.

This juxtaposition of record employment in the service sector and a cautious outlook for the broader economy paints a complex picture of Germany’s labor market dynamics.