German employment falls while part-time working hours tick up

Germany’s labor market underwent a distinct structural shift in the first quarter of 2026, characterized by a decline in the overall number of employed individuals paired with a historic spike in part-time working hours.

According to a report released Tuesday by the German Institute for Employment Research (IAB), the total number of employed individuals in the country fell by 160,000 compared to the same period last year, dropping the workforce baseline to 45.64 million. Despite fewer people holding jobs, the total volume of work across the German economy remained relatively stable at 15.7 billion hours. This stability was entirely driven by a 0.3% increase in average weekly working hours per person, which reached 344.2 hours across the quarter, News.Az reports, citing Anadolu Agency.

The primary driver behind this trend is a significant expansion in part-time employment. The IAB reported that the proportion of part-time workers in Germany rose by 0.4 percentage points year-over-year to hit 40.1%. This represents the first time in German history that the part-time workforce has breached the 40% threshold on a first-quarter basis.

While the weekly workload for standard full-time employees held steady at roughly 38.15 hours, part-time employees picked up the slack, with their average weekly commitments increasing by 0.3 hours to reach 18.88 hours. This increase effectively offset losses stemming from the shrinking full-time labor pool.

Additionally, the IAB noted that a notable drop in nationwide sick leave helped businesses sustain operational capacity amid the headcount dip. The employee absenteeism rate due to illness fell from 6.5% last year down to 6.1% in the opening months of 2026, keeping more available workers active on the job.

News.Az 

By Aysel Mammadzada