Press release No. 072 of 18 February 2021
Persons in employment with place of employment in Germany, 4th quarter of 2020
0.0% on the previous quarter (seasonally adjusted)
+0.3% on the previous quarter (not seasonally adjusted)
-1.6% on the same quarter of the previous year
WIESBADEN – In the fourth quarter of 2020, there were roughly 44.8 million people in employment whose place of employment was in Germany. According to provisional calculations of the Federal Statistical Office (Destatis), the seasonally adjusted number of persons in employment rose slightly by 21,000 (0.0%) on the third quarter of 2020. However, it remained markedly below the pre-crisis level. Compared with the fourth quarter of 2019, the quarter before restrictions were imposed due to the coronavirus pandemic in Germany, the number of persons in employment fell by a seasonally adjusted 1.6%, or 744,000, in the fourth quarter of 2020.
Without seasonal adjustment, the number of persons in employment increased by 145,000, or 0.3%, on the third quarter of 2020. It is a usual phenomenon that the number of persons in employment increases in the fourth quarter of a year compared with the previous quarter. However, the increase this year, during the coronavirus pandemic, was much smaller than the fourth-quarter average of the last five years (+225,000; +0.5%).
Employment down 1.6 % on the same quarter a year earlier
Compared with the fourth quarter of 2019, the number of persons in employment declined by 1.6% (-747,000). In the second and third quarters of 2020, the change rates on the relevant quarter of the previous year were -1.4% and -1.6%, respectively. In the first quarter of 2020, however, employment figures still showed an increase (+0.3% compared with the first quarter of 2019).
It should be noted that the measures taken to contain the coronavirus pandemic have also led to an increased uncertainty of the employment estimates. However, the significantly increasing short-time work does not affect the number of persons in employment because, according to the employment accounts, short-time workers are counted as persons in employment rather than unemployed persons irrespective of the extent of short-time work.
Largest decrease again observed in the service sector
The service sector was the main contributor to the year-on-year decline in the total number of persons in employment in the fourth quarter of 2020 (-496,000; -1.5%). The largest decrease in the absolute number of persons in employment was recorded in trade, transport, accommodation and food services (-341,000; -3.3%) and in business services, which include employment activities (-191,000; -3.1%). Other service activities (incl. associations and other membership organisations), too, saw a strong decline in the number of persons in employment (-90,000; -3.0%) after increasing numbers had been recorded until the end of 2019, while the downward trend in financial and insurance activities, which had been observed for years, continued (-15,000; -1.4%). However, employment gains were recorded for public services, education, health (+141,000; +1.2%) and for information and communication (+4,000; +0.3%).
In industry (excluding construction), the year-on-year decline in the number of persons in employment continued in the fourth quarter of 2020 (-242,000 or -2.9%). In construction, however, the number of persons in employment continued to increase (+18,000; +0.7%). By contrast, employment declined substantially in agriculture, forestry and fishing by 27,000 (-4.7%).
Fewer employees, fewer self-employed
Nearly three quarters of the decrease in employment was due to a fall in the number of employees; it declined by 553,000 (-1.3%) to 40.9 million in the fourth quarter of 2020 compared with the same quarter of 2019. This development was based on the considerably declining number of persons only employed in marginal jobs (people employed on a low-pay basis or on a short-term basis, people in job opportunities) and of employees subject to social insurance contributions. The decrease in self-employment continued and accelerated in the fourth quarter of 2020. The number of self-employed including family workers decreased by 194,000 (-4.7%) to 3.9 million compared with the same quarter a year earlier.
Total hours worked down 4.3%
The average number of hours worked per person in employment decreased by 2.7% to 337.3 hours in the fourth quarter of 2020 compared with the same quarter a year earlier according to first provisional results of the Institute for Employment Research of the Federal Employment Agency. The total number of hours worked, that is, the number of persons in employment multiplied by the hours worked per person in employment, fell by 4.3% to 15.1 billion hours in the same period. This shows especially the impact of short-time work as of the second half of March, which is not reflected in the number of persons in employment, but in the number of hours worked.
Persons in employment in the EU
According to information released by Eurostat, the Statistical Office of the European Union, on 16 February 2021, employment declined on average more in the 27 Member States of the European Union (EU) and the euro area than in Germany in the fourth quarter of 2020 on a year earlier. The decline amounted to 1.7% in the EU and 2.0% in the euro area.
Note on the results published earlier:
In addition to the first calculation of the number of persons in employment and the number of hours worked for the fourth quarter of 2020, the results published so far from the first quarter of 2020 were recalculated as part of the regular revision of national accounts. Regarding the quarterly employment figures, the recalculation resulted in year-on-year change rates that are by 0.1 and 0.2 percentage points lower in the second and the third quarter, respectively, compared with the results published earlier. The annual result of 44.8 million persons in employment and the year-on-year change rate of -1.1, which were communicated in the press release no. 001 of 4 January 2021, have remained unchanged in the recalculation because the minor revision of the quarterly results did not impact the rounded annual result.
| Year, quarter 1 | Persons in employment 2 | Hours worked 3 | |||||
|---|---|---|---|---|---|---|---|
| Total | employees | self- employed 5 | total | per person in employment | |||
| seasonally adjusted value 4 | original value | ||||||
| persons in 1,000 | mn hours | hours | |||||
| 1: For persons in employment: annual and/or quarterly averages 2: Results of employment accounts as part of national accounts; persons in employment whose place of employment is in Germany (domestic concept). 3: Source: Institute for Employment Research of the Federal Employment Agency, Nuremberg. 4: Seasonal adjustment using X13-ARIMA in JDemetra+. 5: Including family workers. qtr = quarter | |||||||
| 2017 | - | 44,262 | 39,989 | 4,273 | 61,483 | 1,389.1 | |
| 2018 | - | 44,868 | 40,645 | 4,223 | 62,229 | 1,386.9 | |
| 2019 | - | 45,269 | 41,117 | 4,152 | 62,596 | 1,382.8 | |
| 2020 | - | 44,782 | 40,784 | 3,998 | 59,636 | 1,331.7 | |
| 2018 | 1st qtr | 44,675 | 44,398 | 40,156 | 4,242 | 15,687 | 353.3 |
| 2nd qtr | 44,813 | 44,790 | 40,563 | 4,227 | 14,814 | 330.7 | |
| 3rd qtr | 44,937 | 45,028 | 40,804 | 4,224 | 15,888 | 352.8 | |
| 4th qtr | 45,053 | 45,257 | 41,055 | 4,202 | 15,841 | 350.0 | |
| 2019 | 1st qtr | 45,184 | 44,920 | 40,733 | 4,187 | 15,978 | 355.7 |
| 2nd qtr | 45,270 | 45,240 | 41,077 | 4,163 | 14,750 | 326.0 | |
| 3rd qtr | 45,291 | 45,376 | 41,229 | 4,147 | 16,074 | 354.2 | |
| 4th qtr | 45,332 | 45,538 | 41,429 | 4,109 | 15,795 | 346.8 | |
| 2020 | 1st qtr | 45,321 | 45,066 | 40,992 | 4,074 | 15,723 | 348.9 |
| 2nd qtr | 44,659 | 44,625 | 40,602 | 4,023 | 13,412 | 300.5 | |
| 3rd qtr | 44,567 | 44,646 | 40,666 | 3,980 | 15,391 | 344.7 | |
| 4thqtr | 44,588 | 44,791 | 40,876 | 3,915 | 15,110 | 337.3 | |
| Percentage change on the previous quarter | Percentage change on the same period of the previous year | ||||||
| 2017 | - | 1.4 | 1.7 | -1.6 | 0.9 | -0.5 | |
| 2018 | - | 1.4 | 1.6 | -1.2 | 1.2 | -0.2 | |
| 2019 | - | 0.9 | 1.2 | -1.7 | 0.6 | -0.3 | |
| 2020 | - | -1.1 | -0.8 | -3.7 | -4.7 | -3.7 | |
| 2018 | 1st qtr | 0.4 | 1.5 | 1.8 | -1.2 | 0.1 | -1.4 |
| 2nd qtr | 0.3 | 1.4 | 1.7 | -1.1 | 2.2 | 0.8 | |
| 3rd qtr | 0.3 | 1.3 | 1.6 | -1.1 | 1.0 | -0.3 | |
| 4th qtr | 0.3 | 1.2 | 1.5 | -1.2 | 1.6 | 0.4 | |
| 2019 | 1st qtr | 0.3 | 1.2 | 1.4 | -1.3 | 1.9 | 0.7 |
| 2nd qtr | 0.2 | 1.0 | 1.3 | -1.5 | -0.4 | -1.4 | |
| 3rd qtr | 0.0 | 0.8 | 1.0 | -1.8 | 1.2 | 0.4 | |
| 4th qtr | 0.1 | 0.6 | 0.9 | -2.2 | -0.3 | -0.9 | |
| 2020 | 1st qtr | 0.0 | 0.3 | 0.6 | -2.7 | -1.6 | -1.9 |
| 2nd qtr | -1.5 | -1.4 | -1.2 | -3.4 | -9.1 | -7.8 | |
| 3rd qtr | -0.2 | -1.6 | -1.4 | -4.0 | -4.3 | -2.7 | |
| 4th qtr | 0.0 | -1.6 | -1.3 | -4.7 | -4.3 | -2.7 | |
| Sector of economic activity 2 | 2018 | 2019 | 2020 | 2020 | |||
|---|---|---|---|---|---|---|---|
| 1st qtr | 2nd qtr | 3rd qtr | 4th qtr | ||||
| 1: Results of employment accounts as part of national accounts (domestic concept); annual and quarterly averages. 2: Classification of Economic Activities, 2008 edition (WZ 2008). qtr = quarter | |||||||
| Persons in 1,000 | |||||||
| Agriculture, forestry and fishing | 608 | 599 | 578 | 555 | 617 | 597 | 546 |
| Industry, excluding construction | 8,311 | 8,360 | 8,169 | 8,255 | 8,172 | 8,129 | 8,119 |
| including: | |||||||
| Manufacturing | 7,719 | 7,758 | 7,561 | 7,647 | 7,567 | 7,520 | 7,507 |
| Construction | 2,515 | 2,552 | 2,570 | 2,539 | 2,558 | 2,583 | 2,601 |
| Trade, transport, accommodation and food services | 10,179 | 10,257 | 10,030 | 10,173 | 9,960 | 10,003 | 9,976 |
| Information and communication | 1,326 | 1,375 | 1,391 | 1,395 | 1,388 | 1,389 | 1,397 |
| Financial and insurance activities | 1,109 | 1,096 | 1,086 | 1,089 | 1,083 | 1,081 | 1,086 |
| Real estate activities | 477 | 481 | 478 | 479 | 477 | 478 | 478 |
| Business services | 6,227 | 6,201 | 6,044 | 6,133 | 6,011 | 6,003 | 6,036 |
| Public services, education, health | 11,105 | 11,313 | 11,473 | 11,451 | 11,411 | 11,428 | 11,603 |
| Other services | 3,011 | 3,035 | 2,963 | 2,997 | 2,948 | 2,955 | 2,949 |
| Change in % on the corresponding period of the previous year | |||||||
| Agriculture, forestry and fishing | -1.1 | -1.5 | -3.5 | -1.9 | -3.3 | -3.6 | -4.7 |
| Industry, excluding construction | 1.7 | 0.6 | -2.3 | -1.1 | -2.2 | -3.0 | -2.9 |
| including: | |||||||
| Manufacturing | 1.6 | 0.5 | -2.5 | -1.4 | -2.4 | -3.3 | -3.1 |
| Construction | 1.5 | 1.5 | 0.7 | 1.4 | 0.6 | 0.5 | 0.7 |
| Trade, transport, accommodation and food services | 1.3 | 0.8 | -2.2 | 0.1 | -2.8 | -2.7 | -3.3 |
| Information and communication | 3.4 | 3.7 | 1.2 | 2.6 | 1.3 | 0.7 | 0.3 |
| Financial and insurance activities | -1.9 | -1.2 | -0.9 | -0.8 | -0.9 | -1.5 | -1.4 |
| Real estate activities | 0.8 | 0.8 | -0.6 | 0.2 | -0.8 | -0.8 | -0.8 |
| Business services | 1.4 | -0.4 | -2.5 | -0.6 | -2.9 | -3.6 | -3.1 |
| Public services, education, health | 1.7 | 1.9 | 1.4 | 2.0 | 1.3 | 1.2 | 1.2 |
| Other services | 0.2 | 0.8 | -2.4 | -0.5 | -3.3 | -3.0 | -3.0 |
Methodological notes:
The differing comparative periods must be taken into account in all press releases on short-term indicators. Short-term economic monitoring focuses on comparisons with the previous month or previous quarter. These reflect short-term economic trends. A comparison with the previous year is intended to offer a long-term comparison of levels and is hardly subject to seasonal fluctuations. Due to strong temporary decreases and increases during the current coronavirus crisis, the results of month-on-month/quarter-on-quarter and year-on-year comparisons may differ considerably. Both of the two perspectives are important: what is the short-term economic trend compared with the previous month/previous quarter, and what is the current level compared with the previous year’s level? In order to provide also a direct comparison with the pre-crisis level, all press releases on short-term indicators available in seasonally adjusted form now include a comparison with February 2020 or the fourth quarter of 2019.
Crisis Monitor enables comparison between corona crisis and financial and economic crisis
The employment figures also form part of the Crisis Monitor (www.destatis.de/krisenmonitor), by means of which the Federal Statistical Office compares the development of major short-term indicators in the corona crisis and the financial and economic crisis of 2008/2009. The Crises Monitor complements the Corona Statistics webpage (www.destatis.de/corona), which provides statistical information on the economic and social consequences of the coronavirus pandemic.
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Detailed data and long time series on persons in employment and the number of hours worked are available in the GENESIS-Online database in the tables on national accounts of the Federation (81000-0012 and 81000-0016) and on the labour market (13321).
