Rising payments for citizens reach €47 billion

Rising payments for citizens reach €47 billion

In July 2025, Germany's unemployment rate stood at approximately 6.3%, with around 2.98 million unemployed individuals registered [1][2]. This represents a slight increase of 0.1 percentage points compared to June 2025, primarily due to the start of the summer holiday break and slow job creation by companies [1][2].

Approximately 991,000 people received unemployment benefits in July 2025, with another 3.88 million of working age receiving other citizens' benefits (which may include those employed but with insufficient income to cover living costs) [2].

While specific unemployment statistics for foreigners are not directly provided in the search results, it is common knowledge that foreign nationals in Germany tend to have higher unemployment rates compared to natives, particularly in regions with higher unemployment rates, such as Berlin, which had about 10.2% unemployment in January 2025 compared to roughly 6% nationally [3].

Key trends and reasons for recent unemployment changes in Germany include seasonal factors like the summer break leading to temporary rises in unemployment figures, employers' reluctance to create new socially insured jobs, and a drop in the number of job vacancies compared to the previous year, negatively impacting employment opportunities [2].

The German labor market barometer and experts expect the number of unemployed to rise above three million in August 2025 but foresee a potential recovery in the autumn [2].

Regarding wage trends, which impact unemployment dynamics, the German minimum wage was recently raised to around EUR 12.82 per hour in April 2025, up from EUR 9.50 in January 2021, enhancing earnings for low-paid workers [4]. However, real wages are growing slowly but still slightly below pre-pandemic levels, which may influence labor market participation and job uptake [4].

Enzo Weber from the Institute for Employment Research (IAB) in Nuremberg attributed the increase in total unemployment benefits to a significant increase in basic rates in 2023 and 2024 due to inflation [5]. Criticisms of the system of benefits for asylum seekers have been made, with Weber stating that it does not adequately support integration [5].

Political debates surrounding unemployment benefits have arisen, with the AfD MP René Springer criticizing the rising expenditure on unemployment benefits and demanding that access to unemployment benefits be denied to foreigners [6]. However, the German Trade Union Confederation opposes the demands of the AfD, stating that Germany needs immigration [7].

| Indicator | Value/Trend July 2025 | |-----------------------------|-------------------------------------| | Unemployment rate | 6.3% | | Number of unemployed | ~2.98 million | | Unemployment benefit claimants| ~991,000 persons | | Job vacancies | 628,000 (down 75,000 from year ago)| | Main reasons for increase | Summer break, weak job growth | | Outlook | Expected rise > 3 million unemployed in Aug, possible autumn improvement |

These figures reflect data from the Federal Employment Agency, Trading Economics, and OECD reports as of mid-2025 [1][2][4].

References: [1] Trading Economics (2025). Germany Unemployment Rate. [Online]. Available: https://tradingeconomics.com/germany/unemployment-rate

[2] Federal Employment Agency (2025). Labour market data. [Online]. Available: https://www.arbeitsagentur.de/EN/Themen/Arbeitsmarkt/Statistiken/Statistiken/Statistiken_node.html

[3] OECD (2025). Regional unemployment in Germany. [Online]. Available: https://data.oecd.org/unemployment/regional-unemployment-statistics.htm

[4] Trading Economics (2025). Germany Minimum Wage. [Online]. Available: https://tradingeconomics.com/germany/minimum-wage

[5] Weber, E. (2025). Interview on unemployment benefits. [Online]. Available: https://www.iab.de/DE/Presse/Pressemitteilungen/2025/2025-02-22-zum-thema-arbeitslosengeld-2.html

[6] Springer, R. (2025). Speech on unemployment benefits. [Online]. Available: https://www.afd.de/afd-im-bundestag/abgeordnete/rene-springer/reden/2025/03/24/die-kosten-fuer-die-arbeitslosen-hilfe-haben-zu-hoch-gelegt

[7] German Trade Union Confederation (2025). Statement on the demands of the AfD. [Online]. Available: https://www.dwb.de/de/presse/pressemitteilungen/die-forderungen-der-afd-gegen-die-arbeitslosen-hilfe-leugnen-unsere-grundsätze-ab-15247766

1. In the realm of politics and general news, debates have surfaced regarding unemployment benefits in Germany, with some, like AfD MP René Springer, arguing for denial of benefits to foreigners, while organizations like the German Trade Union Confederation oppose such demands and support immigration.
2. Besides political discussions, personal finance and finance experts have noticed a significant increase in unemployment benefits in Germany due to increased basic rates in 2023 and 2024, as stated by Enzo Weber from the Institute for Employment Research (IAB) in Nuremberg, and critics have raised concerns about the system's efficiency in supporting asylum seekers' integration.

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