Published by Global Banking & Finance Review®
Posted on August 29, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleGermany's unemployment rate surpasses 3 million, a decade high, amid economic contraction. Seasonally adjusted figures show a slight decrease.
By Maria Martinez
BERLIN (Reuters) -The number of unemployed people in Germany passed 3 million for the first time in a decade, labour office figures showed on Friday, as the labour market of Europe's biggest economy is squeezed by two years of economic contraction.
The mark was reached in seasonally unadjusted terms, with an increase of 46,000 in the number of people out of work.
However, when accounting for seasonal trends, the office said the number of unemployed decreased by 9,000 in seasonally adjusted terms to 2.96 million.
The seasonally adjusted jobless rate remained stable at 6.3%, in line with a forecast by analysts in a Reuters poll.
"The labour market is still marked by the economic downturn of recent years - however, there are also first signs of stabilisation," said labour office head Andrea Nahles.
The unexpected decline in the seasonally adjusted number comes as Germany battles persistent economic weakness. The tariffs announced by U.S. President Donald Trump could put the economy on track for a third year without growth for the first time in history.
Despite the monthly improvement, unemployment remains elevated compared with pre-pandemic levels.
The Ifo Employment Barometer fell slightly in August to 93.8 points, down from 94.0 points in July.
“The labour market is still stuck in crisis,” said Klaus Wohlrabe, head of surveys at Ifo. “The stagnating economy is making companies act cautiously when it comes to personnel planning.”
The German economy has contracted for two consecutive years. As labour market indicators tend to lag other economic indicators, the fall in gross domestic product in the second quarter also suggests weakness ahead.
(Reporting by Holger Hansen, Writing by Friederike Heine, Editing by Rachel More and Alex Richardson)
The number of unemployed people in Germany has surpassed 3 million for the first time in a decade, with a reported increase of 46,000 people out of work.
When accounting for seasonal trends, the seasonally adjusted unemployment figure decreased by 9,000 to 2.96 million, with a stable jobless rate of 6.3%.
The labour market is affected by the economic downturn of recent years, and the stagnating economy is causing companies to be cautious in their personnel planning.
The Ifo Employment Barometer fell slightly in August to 93.8 points, indicating ongoing challenges in the labor market.
While there are signs of stabilization, the labor market remains in crisis due to the economic weakness, and the outlook is uncertain as the economy continues to struggle.
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