German Unemployment Holds at 6.3% as Labor Market Stagnates

Germany’s seasonally adjusted unemployment rate remained unchanged at 6.3% in February 2026, underscoring the continued strain from three years of economic weakness on Europe’s largest labor market. Andrea Nahles, head of the Federal Employment Agency, said the labor market is still struggling to build momentum even as the winter lull comes to an end. The number of unemployed edged up by 1,000 to 2.98 million in seasonally adjusted terms, below expectations for a 2,000 increase. On a non-seasonally adjusted basis, unemployment fell by 14,700 to 3.07 million, easing from January’s near 12-year high of 3.08 million.

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.