German unemployment reaches highest level in 15 years in December

German unemployment rose to 2.9 million people in December, up by 23,000 on the previous month, Federal Employment Agency (BA) figures showed on Wednesday.

This was the highest level seen since December 2010, when 3.012 million people were registered as unemployed, according to the Federal Employment Agency (BA).

Unemployment was up 101,000 compared to December 2024, while the unemployment rate rose by 0.1 points to 6.2% month-on-month.

The figures are based on data available by December 11, according to the agency.

“The labour market continues to lack economic momentum,” BA head Andrea Nahles said.

It is common for unemployment to rise in December when fewer companies hire new staff, and fewer jobs are available in sectors like construction or agriculture amid the cold winter weather.

However, Nahles noted that the labour market had gradually deteriorated over the course of the year in the wake of economic downturn.

“The bottom line is that it is weaker than it was a year ago. However, there are signs that we have reached the bottom.”

Demand for new labour declined further in December, with the agency recording 619,000 vacancies, down by 35,000 year-on-year.

According to the BA’s own think tank, the IAB, no clear trends are discernible over the months ahead.

Germany’s largest union urges joint action to avert industrial crisis

Germany’s largest trade union, IG Metall, says industry must work closely with politicians and employees to overcome what it describes as a profound crisis facing the country’s industrial base.

Pointing to US tariffs, China’s technological race to catch-up and high energy prices resulting from the war in Ukraine, union head Christiane Benner recently warned: “These are already extreme challenges for the German economy. The export model is in danger.”

Benner called for targeted European investment in digitalization and future technologies such as battery production.

She also welcomed moves to soften the planned phase-out of combustion engines by 2035, saying this would give key industries more room to develop better solutions and safeguard industrial core sectors.