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 readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 6, 2025
2 min readLast updated: January 21, 2026
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.
By Holger Hansen
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.
The forecasts, first published by Reuters on Saturday, will be presented by the economy minister on Wednesday.
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)
Unemployment refers to the situation when individuals who are capable of working are unable to find a job despite actively seeking employment.
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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