Lack of stimulus for the economy: Unemployment in Leipzig has risen significantly once again

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The current Merz government at federal level did, after all, get off to a start with a 500-billion-euro package that had been approved by the previous Bundestag. A huge sum of money with which the Federal Republic could have really fuelled investment across the country. But the money is being spread thinly over ten years, and some of it is also disappearing into other items in the federal budget. The result: a stagnating economy with no stimulus. And a significant rise in unemployment figures in July.

It is therefore surprising that Daniel Terzenbach, Head of Regional Affairs at the Federal Employment Agency (BA), stated on Friday 31 July: “Unemployment and underemployment rise noticeably in July, mainly for seasonal reasons. Overall, the weak trend of recent months is continuing on the labour market.”

This is an assessment not shared by the Leipzig branch of the Federal Employment Agency. After all, such a sharp rise in the number of people registered as unemployed is also atypical for a Leipzig summer. It reflects the fact that many companies have completely halted their recruitment of young people. They simply lack reliable impetus from the political sphere – in other words, reliable or even increasing investment.

The completely ill-considered dismissal of Federal Transport Minister Patrick Schnieder by Chancellor Friedrich Merz showed all too clearly that the Chancellor has not even understood the problem, let alone been capable of solving it.

Not to mention that he has squandered a whole year without providing even the slightest stimulus for the stagnating economy. And so far, this has been reflected above all in a marked reluctance on the part of companies to take on new staff. The unemployment figures for Leipzig do not yet reflect waves of redundancies, but merely the fact that many companies are refraining from recruiting young skilled workers. In the long term, this is a disaster, as it means that Leipzig’s companies are losing the workforce they need for the future.

The figures for July: unemployment rose in the Leipzig Employment Agency’s district in July 2026. 32,589 people were registered as unemployed, 1,267 more than in June and 1,606, or 5 per cent, more than a year ago. The unemployment rate stood at 9.1 per cent, 0.3 percentage points higher than the previous month. A year ago, it stood at 8.8 per cent, according to the Leipzig Employment Agency.

Companies are holding back

However, this trend cannot simply be dismissed as a seasonal effect: “July traditionally brings a lot of movement in the labour market – partly due to the end of apprenticeships and labour market policy measures. At the same time, the latest figures show that the economic caution of many companies on the Leipzig labour market remains clearly evident,” says the Leipzig Employment Agency, describing the problem – still very cautiously.

“This makes it all the more important to look ahead now: young people who have not yet found an apprenticeship place should make the most of the remaining opportunities and contact our careers advisory service. Many companies are still looking for motivated young talent,” explained Tina-Marie Reuter, press spokesperson for the Leipzig Employment Agency, on Friday.

It is also true that some sectors are still looking for well-trained staff – often with very specific skills. So we are seeing both effects at the same time: the search by numerous companies for skilled staff, and a reluctance to recruit in certain sectors that used to take on the majority of new entrants to the labour market.

The result is, nevertheless, a widening gap between those registering as unemployed after leaving employment and those who have managed to move from unemployment into a job. This gap roughly corresponds to the rise in registered unemployment in July.

The Leipzig labour market in figures

According to provisional figures, underemployment stood at 38,263 people in June. It fell compared with the previous month, May (-118 people or -0.3 per cent), and rose compared with June 2025 (1,510 people or 4.1 per cent). Underemployment includes not only the unemployed but also those who are not classified as unemployed because, for example, they are receiving support as part of labour market policy measures.

Last month, a total of 7,637 people registered as unemployed. Of these, 3,179 came directly from employment. 6,373 people came off the unemployment register, of whom 2,224 took up employment.

Under the SGB III scheme (Employment Agency), unemployment stood at 13,203 people (916 more than in the previous month and 922 more than a year ago).

Under the SGB II scheme (Jobcentre), 19,386 unemployed people were registered (351 more than in the previous month and 684 more than a year ago). The basic income support authorities (Jobcentres) provided support to 60 per cent of all unemployed people.

Within the basic income support scheme (Jobcentre), the number of benefit households fell by 685 (a decrease of 2 per cent) compared with the previous year, to a total of 30,426.

During the reporting month, a total of 38,268 citizens eligible for the Citizens’ Income who were of working age were supported, which was 911 fewer (-2 per cent) than a year ago.

Jobs

Companies are still looking for staff: 1,058 new vacancies were reported in July (12 more than in the previous month and 149 more than a year ago). Most vacancies are currently in the sectors of other business services, professional, scientific and technical services, construction, health and social care, retail, maintenance and repair of motor vehicles, and manufacturing. This means that there are currently 5,270 vacancies on the Employment Agency’s register.