Unemployment rates on the rise, employment figures increasing in Leipzig, Germany, as of July 2025
In the heart of Germany, Leipzig is grappling with a surge in youth unemployment, a trend linked to a combination of economic restructuring and demographic shifts.
The city, once known for its thriving manufacturing sector, has seen a significant decline in job opportunities, particularly in large manufacturing companies. This has been exacerbated by labor market shifts in the region of Saxony, where Leipzig is located. The loss of over 180,000 jobs nationally, including from major firms like Volkswagen, Bosch, and ZF, has had a profound impact on the youth labor market.
Manufacturing, traditionally a stable source of entry-level jobs for young workers, is now in a state of flux. Simultaneously, Saxony is experiencing talent shortages in high-tech sectors, despite its industrial base in advanced manufacturing and microelectronics. Initiatives like "Silicon Saxony" aim to bridge these gaps, but the transition to digital and tech jobs requires different skills, potentially excluding some young workers unable to adapt quickly.
The economic challenges are not just affecting the job market. They are also contributing to demographic challenges, such as lower birth rates. Economic uncertainty discourages family formation, and the changing composition of family benefits further disadvantages poorer young families.
In July 2025, 30,983 people were registered as unemployed in Leipzig, a 4,523 increase compared to a year ago. The hiring freeze in many companies over the past two years has led to a new record high of 3,528 unemployed young people. Despite this, Leipzig remains a magnet for young people seeking a professional future.
The unemployment rate in Leipzig rose to 8.8% in July, an increase of 0.3 percentage points from the previous month. However, employment growth continues, with 300,097 employed persons reported as of December 2024, over 4,700 more than a year ago.
The increase in unemployment is particularly noticeable among those receiving unemployment benefit I, who are usually temporarily unemployed. The Leipzig Employment Agency currently has 5,614 vacancies in its portfolio. The most vacancies are currently in the sectors of other economic services, freelance, scientific and technical services, construction, retail, maintenance and repair of motor vehicles, health and social services, and manufacturing.
The unemployment rate among all population groups in Leipzig has increased significantly compared to the previous year. The bearers of basic security (Job Centers) supported 60% of all unemployed individuals. As of July 2025, there were 39,500 persons receiving unemployment benefits, a decrease of 2% compared to the previous year.
Despite the challenges, Leipzig continues to attract companies, with 909 new jobs reported in July 2025, although this is 306 fewer than a year ago. The city remains a beacon of opportunity, albeit one navigating through a complex web of economic and demographic challenges.
[1] Source: Statistisches Landesamt Sachsen (2018) [3] Source: IG Metall (2022) [4] Source: Silicon Saxony e.V. (2021) [5] Source: Statistisches Landesamt Sachsen (2020)
- In an effort to address the surge in youth unemployment in Leipzig, various initiatives focus on education-and-self-development and career-development, preparing young people for future job-search opportunities in a changing economy.
- Recognizing the talent shortages in high-tech sectors, business leaders and policymakers in Saxony emphasize the importance of finance for investing in education and training programs that equip workers with the digital skills necessary for employment in the 21st century.
- To tackle the demographic challenges arising from high unemployment rates, local authorities in Leipzig collaborate with various organizations, such as educational institutions and non-profit organizations, to create a supportive environment for family planning and life-long career development.
