German Labor Market Shows Weakest March Unemployment Decline Since 2009

Unemployment in Germany fell by 22,000 to 2.967 million in March 2025, but the recovery remains sluggish with a 6.4% unemployment rate and reduced job openings.

The unemployment rate in March 2025 held steady at 6.4%, unchanged from February but higher than the 6.0% rate recorded in March 2024.
Germany recorded the weakest March unemployment decline since 2009, with 22,000 fewer unemployed people compared to February, totaling 2.967 million.
Job openings significantly dropped, with 643,000 positions reported in March 2025—a decrease of 64,000 compared to the same month last year.
Short-time work usage rose, with 240,000 employees receiving benefits in January 2025, reflecting ongoing economic uncertainty in key sectors like automotive and manufacturing.
Regional disparities persist: Rheinland-Pfalz and Bayern saw slight unemployment declines, while areas like Hamburg experienced stagnation, with long-term unemployment increasing.