Germany Unemployment Holds at 6.3% Despite Economic Slowdown

Germany unemployment remained stable in December, holding at 6.3% compared with the previous month, despite continued economic weakness.

Data from the Federal Employment Agency showed the number of unemployed people increased by about 3,000 from November, coming in below expectations of a 5,000 rise.

With the start of the winter holiday period, the unadjusted number of jobless people rose by 23,000 to around 2.91 million.

The head of the agency said that the labor market slowed in 2025 but showed several signs of reaching a cyclical low.

Year on year, the number of unemployed rose by about 161,000, underscoring ongoing pressure on Germany unemployment.

Economists expect that a cyclical recovery in the coming months could stabilize the labor market by mid-year, although gradual deterioration in Germany unemployment may weigh on private consumption in 2026.