Berlin, the federal capital, has about 3.4 million inhabitants, which makes it the largest city in Germany and the most densely populated federal state. There is an average of 3800 residents per square kilometre.
The capital city region of Berlin is not prosperous in comparison with other German Lander. Disposable income is below the national average. The main reason is high unemployment, which has burgeoned since German unification.
In 2012, the federal capital achieved a gross domestic product of EUR 103.6 billion. This was a year-on-year riso of 3.9% and amounted to a 2.9% share in German GDP. Figures for the first half of 2013 show sustained year-on-year economic growth of 3.2% in Berlin.
In August 2013, a total of 210 898 persons in Berlin were registered unemployed, which is equivalent to a rate of 11.7%, the national unemployment rate being 6.8%. This represents a year-on-year decrease of 3 898, or 0.5%. The capital unemployment rate is thus the highest in Germany.
In June 2013, a total of 1 218 700 men and women were employed in jobs subject to social security deductions. This represents a year-on-year increase of 28 427, or 2.4%.
The German capital is a centre for services and administration. In comparison with the other German Lander, the service sector of the economy accounts for a much larger proportion of jobs, while manufacturing, with only about 9% of all employees, accounts for a much smaller proportion.
The main source of employment in Berlin is business services, with a workforce of 248 900, followed by health care and social work, with 182 400 employees, and wholesale and retail trade and the repair and maintenance of vehicles and personal and household goods, with 151 400.
The strongest job growth between June 2012 and June 2013 was registered in business services, where the number of jobs increased by 7 221. The wholesale and retail trade and the repair and maintenance of vehicles and personal and household goods came second with an increase of 6 034, followed by health care and social work, with 6 026 new jobs, and hotels and restaurants, up 3 130. In percentage terms, the main growth areas were hotels and restaurants (up by 5.5%) and the communication sector (up by 4.5%).