Unemployment in Germany reached its highest level in nearly a decade, with nearly three million people out of work in January 2025, according to the Federal Employment Agency.
The number of unemployed individuals rose to 2.993 million, an increase of 186,000 from December, pushing the unemployment rate up by 0.4 percentage points to 6.4%.
While the early-year rise in unemployment is typically seasonal, experts are increasingly concerned that the country’s weakening economy is putting more pressure on the labor market.
“Employment growth continues, but is losing momentum,” said Andrea Nahles, head of the Federal Employment Agency.
The last time unemployment exceeded three million was in February 2015. With ongoing economic slowdown and global instability, experts predict that Germany’s labor market will likely continue to face challenges in the coming months.
