Germany’s labor market is showing persistent weakness, with unemployment figures climbing in November, according to data released Friday by the Federal Employment Agency (BA). The number of unemployed individuals rose by 111,000 compared to the previous year, reaching 2.885 million. While a seasonal decline of 26,000 was observed between October and November, lowering the unemployment rate to 6.1%, the overall trend indicates a concerning slowdown in economic activity.
Bundesagentur für Arbeit CEO Andrea Nahles acknowledged the concerning state of affairs, stating that “the weakness of the economy continues and the labor market lacks dynamism”. Her assessment highlights a stagnant employment landscape, with job creation failing to keep pace with the growing number of potential workers. Coupled with an increase in registered short-time work applications-now affecting approximately 209,000 employees-the data suggests a fragility in numerous sectors.
While the rise in short-time work is lower than the figures recorded a year ago, the upward trend in recent weeks is raising political questions. Critics argue that government policies, including recent regulations impacting skilled worker immigration, have failed to generate the economic stimulus needed to bolster job creation and invigorate the labor market. The potential for a broader economic downturn is fueling debate within the ruling coalition, with calls for a renewed focus on structural reforms and proactive measures to support businesses and prevent further job losses. The current figures underscore the urgency of addressing the underlying economic challenges facing Germany, lest the persistent labor market stagnation begins to translate into more substantial and long-term economic hardship.