Germany's Persistent Job Market Challenges Amid Economic Stagnation

Germany's job market remains sluggish with unemployment rising by 3,000 in December 2025, against expectations of a 5,000 increase. The jobless rate held at 6.3%. This stagnation reflects broader economic struggles and structural industry challenges, complicating potential recovery efforts in private consumption for 2026.

Germany faces ongoing challenges in its job market as the number of unemployed rose slightly in December, according to data released by the labour office. Despite predictions of a 5,000 increase, the jobless count climbed by only 3,000, maintaining a steady unemployment rate of 6.3% in Europe's largest economy.

The head of the labour office, Andrea Nahles, commented on the lack of economic momentum, highlighting a continuous weak trend at the year's end. The nation wrapped up 2025 with 2.9 million individuals unemployed, nearing the three million mark encountered earlier in the year.

ING's global head of macro, Carsten Brzeski, remarked on the increase of 500,000 unemployed over four years, attributing it to prolonged economic stagnation and industrial challenges. With 619,000 job vacancies in December, 35,000 less than the previous year, recovery in private consumption in 2026 looks uncertain, according to experts.

(With inputs from agencies.)