Germany's Economic Woes: Unemployment Crisis Looms Amid Political Shift

Unemployment in Germany rose by 5,000, affected by economic stagnation. The rate held at 6.2%, aligning with forecasts. Germany's economy suffers from reduced spending and a manufacturing recession. The CDU/CSU won elections, and Friedrich Merz aims to boost the economy, possibly through a coalition with the SPD.

The number of unemployed in Germany increased by 5,000 in February, signaling continuing economic pressure, according to the federal labour office. This rise was less than the 15,000 projected by analysts. The unemployment rate remained steady at 6.2%, consistent with predictions.

Germany's economy has faced contraction for two consecutive years and is expected to stagnate in 2025. The manufacturing sector recession and reduced government spending contribute to the country's economic challenges, with the unemployment figure potentially surpassing 3 million for the first time in a decade.

The conservative CDU/CSU bloc's election victory puts Friedrich Merz in line to become chancellor. He plans to form a coalition to revitalize the economy, most likely with the outgoing Chancellor Olaf Scholz's Social Democrats. Employers' association leader Rainer Dulger calls for cutting red tape and streamlining digital processes to stimulate the labor market.

(With inputs from agencies.)