German Labor Market Faces Rising Unemployment Concerns

The IAB's labor market barometer drops to its lowest level since the pandemic, forecasting further unemployment increases in early 2025.

The IAB labor market barometer fell to 99.2 points in December, marking its fourth consecutive decline and the lowest level since the pandemic.
Unemployment forecasts for the next three months are pessimistic, with the unemployment index dropping to 97.6 points.
Employment trends are uneven, with industries like health, education, and transportation showing growth, while sectors such as manufacturing, construction, and temporary work decline.
Smaller businesses are experiencing job losses, while larger companies remain stable in terms of employment levels.
In November 2024, 2.77 million people were unemployed in Germany, an increase of 168,000 compared to the same period in 2023.