German Unemployment Stuck at Four-Year High

Germany’s seasonally adjusted unemployment rate held steady at 6.3% in January 2026, highlighting a sluggish and uneven recovery in Europe’s largest labor market. Labor Office head Andrea Nahles said the job market continues to lack economic momentum, with employment largely stagnating and hiring demand remaining subdued—signaling a fragile rebound after two years of economic contraction. External headwinds have added to the strain, with ongoing US tariffs weighing on exports and the broader industrial sector. The number of unemployed was unchanged at 2.98 million, defying expectations of a 4,000 increase. On a non-seasonally adjusted basis, unemployment rose by 176,600 to 3.08 million, marking its highest level in nearly 12 years.

Germany’s seasonally adjusted unemployment rate held steady at 6.3% in December 2025, capping a year marked by a sluggish and uneven labor market recovery in Europe’s largest economy. Labor Office head Andrea Nahles said the job market continues to lack economic momentum, with weakness persisting into year-end. Employment has largely stagnated and hiring demand remains subdued, underscoring the fragile recovery following two years of economic contraction. Ongoing US tariffs have added further pressure on exports and the industrial sector. The number of unemployed rose modestly by 3,000 to 2.98 million, compared with expectations for a 5,000 increase. On a non-seasonally adjusted basis, unemployment climbed by 22,900 to 2.91 million, staying close to the decade high of just over 3 million reached in August.

Germany’s seasonally adjusted unemployment rate held at 6.3% in November 2025, matching its highest level since late 2020 and highlighting persistent labor-market fragility. Labor Office head Andrea Nahles noted that employment levels have stagnated and labor demand remains muted, reflecting a sluggish recovery after two years of economic contraction. Ongoing US tariffs have further pressured exports and the industrial sector. The number of unemployed edged up by 1,000 to 2.97 million, better than expectations for a 5,000 increase. On a non-adjusted basis, unemployment fell for a third straight month to 2.89 million, continuing to retreat after briefly rising above 3 million in August for the first time in a decade.