Germany's Labor Market Faces Challenges Amid Economic Slowdown

Germany's unemployment figures rose by 10,000 to 2.87 million in December, less than expected. With economic difficulties persisting, unemployment is forecasted to exceed 3 million in 2025. Job availability decreased, reflecting weakened labor demand. Economic indicators suggest stagnation in employment levels for the foreseeable future.

The latest data from Germany's federal labor office indicate a smaller-than-expected increase in unemployment figures for December, rising by 10,000 to a total of 2.87 million, contrary to Reuters analysts' projection of a 15,000 rise.

Labor office head Andrea Nahles pointed out that the seasonal trend of increased unemployment was intensified by economic stagnation, with the rate rising to 6.0% in 2024 from 5.7% in 2023.

Despite a constant seasonally adjusted unemployment rate of 6.1%, experts predict a rise beyond 3 million unemployed by 2025, as job openings shrank significantly, signaling subdued labor demand.

(With inputs from agencies.)