Press Employment in the 2nd quarter of 2021 up 0.2% on the previous quarter

However, employment figures remained markedly below the pre-crisis level

Press release No. 389 of 17 August 2021

Persons in employment with place of employment in Germany, 2nd quarter of 2021
+0.2% on the previous quarter (seasonally adjusted)
+0.6% on the previous quarter (not seasonally adjusted)
0.0% on the same quarter a year earlier

WIESBADEN – In the second quarter of 2021, there were roughly 44.7 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 increased by 75,000 (+0.2%) on the previous quarter, after it had still declined in the first quarter of 2021 (-43,000 people; -0.1%). However, it remained markedly below the pre-crisis level. On a seasonally adjusted basis, the number of persons in employment in the second quarter of 2021 decreased by 1.2%, or 564,000 people, on the fourth quarter of 2019, the last quarter before restrictions were imposed on account of the coronavirus pandemic.

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Without seasonal adjustment, the number of persons in employment increased by 268,000, or 0.6%, on the first quarter of 2021. Actually, seasonal growth in employment is typical in the second quarter of a year due to the general increase in outdoor work in spring. The spring upturn in 2021 was however lower than the relevant average of the three years before the crisis (2017 to 2019) (+383,000 people; +0.9%). In the second quarter of 2020 employment had substantially decreased by 410,000 people, or 0.9%, on the previous quarter due to the beginning of the coronavirus pandemic.

Year-on-year decline in employment coming to a halt

Compared with the second quarter of 2020, the number of persons in employment was almost unchanged (+4,000; (0.0%)) in the second quarter of 2021. Thus the year-on-year decline in employment did not continue; in the first quarter of 2021 the year-on-year rate of change had still been -1.5%. However, this substantially improved trend of the year-on-year change rate is mainly due to a so-called base effect. Having increased in the first quarter (+0.5%; +216,000 people), the number of persons in employment decreased dramatically in the second quarter of 2020 (-1.1%; -518,000 people) as a result of the coronavirus crisis.

It should be noted that the measures taken to contain the coronavirus pandemic have also led to an increased uncertainty of the employment estimates. The significant increase and subsequent decline in short-time work, however, does not affect the number of persons in employment because, according to the employment accounts, short-time workers are still counted as persons in employment rather than unemployed persons irrespective of the extent of short-time work.

Service branches again recording employment gains

In the second quarter of 2021 it was the service sector that contributed most to the increase in employment on the same quarter a year earlier (+104,000 people; +0.3%). However, the development differed between the individual branches. The largest absolute employment gains were recorded for public services, education, health (+250,000 people or +2.2%), followed by business services (+34,000 or +0.6%), which also include employment activities, and information and communication (+29,000 or +2.1%). A larger decrease in employment was again recorded in trade, transport, accommodation and food services ( 175,000 or -1.8%). After the number of persons in employment had increased in other service activities (incl. associations and other membership organisations) until the first quarter of 2020, it now continued to decline (-36,000 or -1.2%). The downward trend in financial and insurance activities, which had been observed for years, continued at a slower pace (-3,000 or -0.3%).

In industry (excluding construction), the number of persons in employment continued to decline in the second quarter of 2021 year on year (-124,000 people or -1.5%). In construction, however, the number of persons in employment continued to increase (+39,000 or +1.5%). Employment was down in agriculture, forestry and fishing by 15,000 (-2.4%).

More employees, fewer self-employed

The slight year-on-year increase in employment (+4,000 or 0.0%) was mainly due to the positive development of the number of employees subject to social insurance contributions. However, larger employment losses were recorded in the 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 the number of self-employed people. All in all, the number of employees increased by 129,000 (+0.3%) in the second quarter of 2021 compared with the same quarter of 2020, reaching 40.8 million. The number of self-employed including family workers decreased by 125,000 (-3.1%) to 3.9 million compared with the same quarter a year earlier.

Substantial increase of 6.8% in total hours worked

The average number of hours worked per person in employment rose considerably by 6.8% to 316.2 hours in the second quarter of 2021 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, was also up by 6.8% to 14.1 billion hours in the same period. This positive development, too, was influenced by the base effect of the previous year. Furthermore this shows especially the effect of declining short-time work which climbed to a very high level of six million people (maximum) from the second half of March 2020, while it has fallen to just over two million people again. This is not reflected in the number of persons in employment, but in the number of hours worked.

Employment in the EU

According to information released by Eurostat, the Statistical Office of the European Union, on 18 May 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 first quarter of 2021 on a year earlier. The decline amounted to 1.8% in the EU and 2.1% in the euro area. Eurostat will release data for the second quarter of 2021 on 17 August 2021.

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 first quarter of 2021, the results published so far from the first quarter of 2017 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 percentage points lower, and no more than 0.2 percentage points higher, than the results published earlier. The change rates of the annual averages remain unchanged for 2017 to 2019. The 2020 annual average, which was -0.8%, is 0.2 percentage points higher than shown previously.

Persons in employment and hours worked
Year,
quarter 1
Persons in employment 2Hours worked 3
Totalemployeesself-
employed 5
totalper
person in
employment
seasonally adjusted value 4original valuemn hourshours
persons in 1,000
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
2018-44,85840,6354,22362,1131,384.7
2019-45,26841,1174,15162,5391,381.5
2020-44,89840,8604,03859,4541,324.2
20181st qtr44,66744,38840,1464,24215,662352.9
2nd qtr44,81444,78140,5544,22714,783330.1
3rd qtr44,92445,01940,7954,22415,855352.2
4th qtr45,03045,24541,0444,20115,812349.5
20191st qtr45,17444,90640,7204,18615,952355.2
2nd qtr45,27445,23041,0694,16114,727325.6
3rd qtr45,28845,37841,2314,14716,060353.9
4th qtr45,33945,55941,4484,11115,800346.8
20201st qtr45,38245,12241,0364,08615,604345.8
2nd qtr44,76544,71240,6624,05013,235296.0
3rd qtr44,70744,79440,7604,03415,446344.8
4thqtr44,74344,96540,9833,98215,169337.4
20211st qtr44,70044,44840,5013,94714,953336.4
2nd qtr44,77544,71640,7913,92514,139316.2
Percentage change
on the previous quarter
Percentage change on the same period of the previous year
2018-1.41.6-1.21.0-0.3
2019-0.91.2-1.70.7-0.2
2020--0.8-0.6-2.7-4.9-4.1
20181st qtr0.41.51.8-1.2-0.1-1.6
2nd qtr0.31.41.7-1.12.00.5
3rd qtr0.21.31.6-1.10.9-0.5
4th qtr0.21.21.5-1.21.50.3
20191st qtr0.31.21.4-1.31.90.7
2nd qtr0.21.01.3-1.6-0.4-1.4
3rd qtr0.00.81.1-1.81.30.5
4th qtr0.10.71.0-2.1-0.1-0.8
20201st qtr0.10.50.8-2.4-2.2-2.6
2nd qtr-1.4-1.1-1.0-2.7-10.1-9.1
3rd qtr-0.1-1.3-1.1-2.7-3.8-2.6
4th qtr0.1-1.3-1.1-3.1-4.0-2.7
20211st qtr-0.1-1.5-1.3-3.4-4.2-2.7
2nd qtr0.2 0.00.3-3.16.86.8
Persons in employment whose place of employment is in Germany, by economic sector 1
Sector of economic
activity 2
202020202021
1st qtr2nd qtr3rd qtr4th qtr1st qtr2nd 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 fishing580555616601549533601
Industry, excluding construction8,1808,2618,1848,1408,1318,0618,060
Manufacturing7,5767,6597,5817,5357,5217,4567,453
Construction2,5792,5422,5642,5952,6152,5692,603
Trade, transport, accommodation and
food services
10,01210,1439,93710,0069,9649,7319,762
Information and communication1,3981,4011,3921,3951,4061,4061,421
Financial and insurance activities1,0861,0881,0811,0831,0901,0811,078
Real estate activities477476475478479478480
Business services6,1066,1816,0666,0656,1146,0376,100
Public services, education, health11,48011,44611,41111,43611,63211,61911,661
Other services3,0003,0292,9862,9952,9852,9332,950
Change in % on the corresponding period of the previous year
Agriculture, forestry and fishing-3.2-2.1-3.6-2.9-4.0-4.0-2.4
Industry, excluding construction-2.2-1.1-2.0-2.9-2.9-2.4-1.5
Manufacturing-2.4-1.2-2.3-3.2-3.1-2.7-1.7
Construction1.31.70.91.11.31.11.5
Trade, transport, accommodation
and food services
-2.10.0-2.9-2.5-3.1-4.1-1.8
Information and communication1.53.01.50.90.50.42.1
Financial and insurance activities-0.9-0.8-1.0-1.1-0.7-0.6-0.3
Real estate activities-0.6-0.4-1.0-0.6-0.20.41.1
Business services-1.90.1-2.3-3.0-2.4-2.30.6
Public services, education, health1.52.01.31.41.61.52.2
Other services-1.30.7-2.1-1.9-2.3-3.2-1.2

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.

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).

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