German employment rose by 0.1% in Q1 2024 on a seasonally-adjusted basis (vs 0.0% prior, revised from +0.1%) according to Destatis, with hours worked up 0.7% Q/Q (after a weak -0.8% prior). This implies a strong increase in hours worked per employee (+0.6% Q/Q vs -0.8% prior).
* The data adds some context for the slight growth in German GDP in the preliminary estimate - and suggests weak productivity for Q1.
* The increase in employment was driven by services sectors: public (incl. education & healthcare) and financial (up both 0.3% Q/Q). However, in contrast to Q4, employment still rose slightly on an SA basis even when excluding the public services sector.
* Industrial sector (ex-construction) employment fell by 0.1% Q/Q (the third consecutive quarterly decrease; -0.1% Q4), though total hours worked actually increased by 0.6% Q/Q (vs -1.2% prior).
* Construction was the weakest sector, at -0.5% Q/Q (vs -0.4% prior), with hours worked at -0.3% Q/Q (vs -0.3% prior). This suggests some higher productivity there as construction was reported to be one of the positive contributors to Q1 GDP, driven by unusually good weather at the beginning of 2024.
* Elsewhere, the number of self-employed persons continued a long-term downtrend at -0.3% Q/Q (vs -0.3% prior) - the trend has been negative here every quarter since Q3 2011.
