Overview

• Germany's unemployment rate increased to 6.3% in March 2025, up 0.1 percentage points from February, with 26,000 more people unemployed.
• This marks the weakest March labor market performance since the 2007-2009 financial crisis, according to economists and official data.
• Traditional spring employment growth, known as the 'spring revival,' failed to materialize due to ongoing economic stagnation and weak hiring activity.
• Structural challenges, including high energy costs, weak export demand, and a manufacturing slowdown, continue to weigh heavily on Germany's economy.
• The incoming government, led by Friedrich Merz, plans to stimulate the economy with increased defense and infrastructure spending, which experts believe could offer a path to recovery.