German Labor Market Faces Stagnation as Unemployment Remains High

Unemployment in Germany saw slight monthly declines in February but remains significantly higher than a year ago, with long-term challenges persisting.

The national unemployment rate in Germany held steady at 6.4% in February, with 2.989 million people unemployed, marking a slight decrease of 3,000 compared to January.
Year-over-year, unemployment rose by 175,000, reflecting ongoing economic challenges and a sluggish recovery in the labor market.
Demand for labor continued to decline, with 639,000 open positions reported in February, 67,000 fewer than the same time in 2024, highlighting employer caution in hiring.
Long-term unemployment remains a critical issue, with nearly one million individuals unemployed for over a year, complicating reintegration into the workforce.
Regional disparities persist, with higher unemployment rates in areas like Berlin (10.2%) and Bremen (11.7%), while southern states like Baden-Württemberg reported lower rates of around 4.6%.