German Gen Z labour‑force participation climbs to 76.8 % in 2025, outpacing older workers — UnionPress

A new IAB analysis shows that 76.8 % of Germans aged 20‑24 were in the labour market in 2025 – a rise of 7.1 percentage points since 2015 and well above the 3.1‑point gain recorded for the 25‑64 cohort.

In 2025, 76.8 % of Germans aged 20‑24 were employed or actively seeking work, according to a study by the Institute for Employment Research (IAB) cited by Handelsblatt. The same study shows that the participation rate for this cohort rose by 7.1 percentage points between 2015 and 2025, a gain that more than doubles the 3.1‑point increase recorded for the broader 25‑64 age group over the same decade.

The IAB re‑examined the Federal Statistical Office’s Mikrozensus, the annual micro‑census that records employment status for the entire population. Researchers Timon Hellwagner and Enzo Weber led the re‑analysis and highlighted that “the Generation Z is as active in the labour market as young people have not been for decades”. The study’s headline numbers are:

All figures are drawn directly from the Handelsblatt article that quotes the IAB study. No conversion or additional calculation has been applied.

The Mikrozensus provides a yearly snapshot of employment, unemployment and inactivity for the whole of Germany. By re‑analysing the raw data, the IAB was able to isolate the 20‑24 age band and track its evolution over a ten‑year period. The timeline of the key events is:

The table makes clear that the most recent two‑year window (2023‑2025) contributed roughly one‑third of the total decade‑long gain for Gen Z, while the older cohort’s progress has been markedly slower.

The release of the IAB figures coincides with a heated discussion in Berlin about extending the statutory weekly working time. Chancellor [unnamed] has called for Germans to work more, and CSU leader Markus Söder has argued that “an extra hour of work per week would bring enormous economic growth and is not too much to ask”. Both politicians cite the younger generation’s willingness to work as a justification for the proposal.

By providing concrete evidence that Gen Z already participates at a historically high level, the IAB study supplies a data‑driven counter‑point to the “lazy youth” stereotype that often fuels the debate. The study’s authors stress that the rise is “unprecedented in recent decades”, suggesting that policy proposals should be grounded in the actual labour‑market behaviour of the cohort rather than in assumptions.

When the participation rates are placed side by side, the disparity becomes stark. Over the ten‑year span, Gen Z’s rate grew by 7.1 percentage points, while the 25‑64 group improved by only 3.1 percentage points. In the most recent two‑year slice, the gap widens further: Gen Z added 0.9 pp versus 0.4 pp for older workers.

It is also worth noting what the data do not reveal. The IAB study, as reported, does not break down participation by sector, contract type (full‑time vs part‑time) or gender. Consequently, the impact on specific industries or on gender equality remains unknown.

Future releases of the IAB’s full report are expected to contain a more granular breakdown, which will allow analysts to answer these questions. Until then, the current figures provide a solid benchmark for any legislative or employer‑level decisions that hinge on the availability of young labour.

For public‑affairs professionals and in‑house counsel, the immediate takeaway is that any regulatory proposal affecting working hours must be calibrated against a labour market where a record‑high share of 20‑24‑year‑olds are already active. Trade associations representing employers can cite the 76.8 % figure to argue that the supply side is robust, while also preparing for potential wage‑pressure effects.

For the younger workers themselves, the data suggest that the stereotype of a “lazy youth” is no longer supported by the labour‑market evidence. Whether this translates into higher earnings or better career prospects will depend on how employers and policymakers respond to the new reality.

In sum, the IAB’s re‑analysis of the Mikrozensus delivers a clear, data‑backed picture: Generation Z’s participation in Germany’s labour market has surged to a historic high, outpacing the older cohort by a wide margin. The figures arrive at a politically sensitive moment, offering both ammunition and caution for those shaping the future of work in Germany.