Unemployment in Hesse: alarm signal or calm normality?

Unemployment in Hesse: alarm signal or calm normality?

in January 2025 Hessen recorded a significant increase in unemployment. Around 207,200 people were registered unemployed, which corresponds to an increase of 6.4 percent compared to the previous year. The associated unemployment rate is 5.9 percent and has increased by 0.3 percentage points compared to the previous year. Such unemployment figures at the beginning of the year were last observed in 2010. In Frankfurt, the unemployment rate is even 6.9 percent, while the highest odds in Wiesbaden, Kassel and Offenbach can be found, with 8.3 percent, 9.2 percent and 9.8 percent respectively.

labor market development and fears

Despite the challenges, there was a record value for employment in Hesse, which was subject to social security contributions last year, with over 640,000 employees in Frankfurt. Nevertheless, the job search takes longer, even in times of a shortage of skilled workers in many industries. Dr. Frank Martin, the head of the Hessian regional directorate, described the increase in unemployment as customary, but also as worrying. People with a foreign passport are particularly affected in whom the unemployment rate is 14.2 percent.

The challenges concern all groups of people: men have an unemployment rate of 6.0 percent, older workers are 5.8 percent, while women and under 25 year old are 0.3 percentage points each. In January 2024, underemployment even rose to 260,781 people (+3.8% compared to the previous year). A significant part of the unemployed, namely 64.6 percent, receives services in accordance with SGB II, which represents an increase of 3.5 percent compared to the previous month.

vacancies and market adjustments

The situation on the job market remains tense. Overall, the inventory of unoccupied jobs in Hesse was around 45,900 in January 2024, which corresponds to a decline of 2.7 percent. The job access was also declining with approximately 7,100 reports reported in January 2024. Industries such as the temporary employment and the processing of business have experienced declines of 9.7 percent or 1.6 percent, while public administration and social affairs have had slight growth of up to 2.8 percent.

The head of the Frankfurt job center, Ulli Dvorák, appeals to companies to offer people with incomplete qualifications and demand greater flexibility from job seekers and companies. In order to effectively address the challenges on the job market, adjustments and cooperation are essential.

Further information on the labor market situation in Hessen can be called up at statistik.arbeitsagentur.de . The current developments show that the challenges are complex, but can be mastered with a strong focus on flexibility and cooperation.