German Unemployment Rises to Nearly 3 Million in January

The highest unemployment rate in a decade reflects seasonal trends and economic challenges, with significant regional disparities and reduced demand for workers.

Germany's unemployment rate increased from 6.0% in December 2024 to 6.4% in January 2025, with 2.993 million people unemployed, the highest figure since 2015.
The rise is partly attributed to seasonal factors, such as the end of temporary contracts and weather-related job losses, alongside ongoing economic weakness.
Regions like Bavaria, Hamburg, and Saxony reported significant increases, with Bavaria seeing its highest unemployment since 2010 and Hamburg's rate climbing to 8.4%.
The demand for workers has declined, with 632,000 open positions in January, a decrease of 66,000 compared to the same month last year.
Short-term labor solutions like Kurzarbeit (short-time work) have expanded, with nearly 54,000 new applications in January, reflecting broader economic uncertainty.