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    Home > Finance > German unemployment expected to fall as economy gains pace, source says
    Finance

    German unemployment expected to fall as economy gains pace, source says

    Published by Global Banking & Finance Review®

    Posted on October 6, 2025

    2 min read

    Last updated: January 21, 2026

    German unemployment expected to fall as economy gains pace, source says - Finance news and analysis from Global Banking & Finance Review
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    Tags:unemployment rateseconomic growthfinancial crisis

    Quick Summary

    Germany's unemployment is expected to decline as the economy recovers, with projections showing a decrease to 6.0% by 2027. The economy ministry has revised growth forecasts upwards.

    Table of Contents

    • Unemployment Trends and Economic Growth
    • Current Unemployment Statistics
    • Government Growth Forecasts
    • Projected Unemployment Rates

    Germany's Unemployment Rate Predicted to Decline as Economy Recovers

    Unemployment Trends and Economic Growth

    By Holger Hansen

    Current Unemployment Statistics

    BERLIN (Reuters) -Germany's unemployment level is expected to fall in the two next years as the long-awaited recovery of Europe's biggest economy gathers pace, a source told Reuters on Monday, citing government forecasts.

    Government Growth Forecasts

    The forecasts, first published by Reuters on Saturday, will be presented by the economy minister on Wednesday.

    Projected Unemployment Rates

    According to the new government projections, unemployment will edge down from 6.3% this year to 6.2% in 2026, before easing to 6.0% in 2027.

    The number of unemployed people in Germany topped 3 million for the first time in a decade in August as Germany has struggled with a persistently weak economy since the onset of the COVID-19 pandemic, followed by Russia's full-scale invasion of Ukraine.

    According to the government's projections, the number of unemployed is not expected to fall significantly to an annual average of around 2.8 million until 2027.

    Germany's economy ministry revised its growth forecast for this year up to 0.2% from an earlier forecast of zero, the source told Reuters on Saturday.

    The ministry now forecasts 1.3% growth for next year and 1.4% growth in 2027.

    (Reporting by Holger Hansen, writing by Maria Martinez, editing by Miranda Murray)

    Key Takeaways

    • •Germany's unemployment rate is expected to decrease over the next few years.
    • •The economy ministry revised its growth forecast for this year to 0.2%.
    • •Unemployment is projected to fall to 6.0% by 2027.
    • •The number of unemployed is expected to average around 2.8 million by 2027.
    • •Germany's economic growth is forecasted at 1.3% for next year.

    Frequently Asked Questions about German unemployment expected to fall as economy gains pace, source says

    1What is unemployment?

    Unemployment refers to the situation when individuals who are capable of working are unable to find a job despite actively seeking employment.

    2What is economic growth?

    Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured by the rise in Gross Domestic Product (GDP).

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