Jobless Rate in Germany Rises in December, Economic Growth Remains Weak
Germany’s unemployment rate rose in December, with the number of jobless people increasing by 33,000 to 2.807 million, according to the Federal Employment Agency in Nuremberg. This marks a 170,000 increase compared to the same period last year.
The unemployment rate rose by 0.1 percentage points to 6% in December, compared to the previous month. The agency reported that the number of jobless individuals has been steadily rising, with a 178,000 increase in the annual average for 2024, reaching 2.787 million.
However, when seasonal fluctuations are adjusted, the number of unemployed people rose by 10,000 in the month-on-month comparison.
The German economy has been showing signs of stagnation, with a minimal 0.1% growth in the summer quarter and no signs of a recovery by the end of the year. The Ifo Business Climate Index has deteriorated for the sixth time in seven months, and consumer sentiment, as measured by the GfK market research group, remains low, with Germans remaining highly uncertain about the future.
The rise in unemployment is partly due to the expiration of temporary contracts, a decrease in new hires before the holiday season, and a slowdown in the construction industry, which is weather-dependent.
Moreover, the economic downturn has led to an increase in short-time work, with 287,000 employees receiving short-time work benefits in October, up from 225,000 in September, according to the Federal Employment Agency.