"However, the development differed considerably between the individual economic sectors in 2021," Destatis said in a statement.
The largest employment gains were recorded for public services, education and health (2.2 percent) and for information and communications (2.4 percent). The trade, transport and hospitality sectors, on the other hand, suffered major employment losses (minus 1.8 percent) after a 2.1 percent drop in 2020.
"Very positive contributions came again from construction," Destatis said, which recorded an increase of 1.2 percent in employment, showing that the "good situation in the construction industry continues."
Back in 2020, the COVID-19 crisis stopped an upward trend in employment in Germany, which had lasted for over 14 years and had led to a decrease of 370,000 people.
Meanwhile, the growth prospects for Germany's labor market have been worsening due to demographic change. "The offsetting effect on this development caused by higher labor force participation of the domestic population and the immigration of foreign labor is decreasing," Destatis noted.
Last week, the Institute for Employment Research (IAB) said that unemployment in Germany would rise again slightly over the next few months. "The Omicron variant continues to prolong the coronavirus crisis. This is particularly critical for long-term unemployment," said Enzo Weber, head of the IAB's research department on forecasts and macroeconomic analyses.
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