Germany’s jobless rate hits 6.4%, vacancies decline

Shafaq News/ Germany’s unemployment rate edged higher in 2025, as Europe’s largest economy continues to weigh on the labor market, official data showed on Friday.

According to the Federal Employment Agency, the number of unemployed people in Germany rose by 11,000 in January, after seasonal adjustments, bringing the total to 2.88 million.

“This figure came in lower than analysts’ expectations of a 14,000 increase. However, the seasonally adjusted jobless rate inched up to 6.2%,” the agency added.

With Germany’s economic outlook remaining bleak, unemployment is projected to rise further throughout the year, surpassing 3 million for the first time in a decade by early 2025.

The agency also reported that job vacancies fell to 632,000 in January, marking a 66,000 decline compared to the previous year, indicating weakening demand for labor.

Monthly, the unemployment rate rose by 0.4 percentage points to 6.4%, according to the data.

German media outlets quoted the president of Germany's Confederation of German Employers' Associations, Rainer Dulger, “The labor market figures are an alarm signal. The economic and structural weakness of the German economy is hitting the labor market with full force.”