has risen above three million for the first time in more than a decade, according to the Federal Employment Agency (BA).
The increase raises the stakes for the centrist coalition government’s .
“This will be the focus of the federal government,” Chancellor Friedrich Merz said on the sidelines of Franco-German ministerial talks in Toulon in southern France on Friday. The increase in unemployment, he added, was not unexpected.
How do the figures stack up?
The number climbed in August by 46,000 to 3.025 million. The ticked up 0.1 percentage points to 6.4%.
The seasonally adjusted trend was slightly better than feared in August, showing an actual fall by 9,000 in August compared with July — defying forecasts of a 10,000 rise. Compared with August last year, however, joblessness was still up by 153,000.
However, labor demand is slowing. There were 631,000 job openings in August — 68,000 fewer than a year ago.
What do the figures mean?
BA chief Andrea Nahles explained that the summer lull was responsible for the increase, since many firms delay new hires until after the holiday period. She stressed that while the labor market remains weighed down by years of weak growth, there were “early, fragile signs” of stabilization.
Short-time work, while still elevated, has been slowly declining since the start of the year. Nahles forecast that the usual autumn upturn in September should ease the situation, but warned that the three-million mark might again be breached in the winter.
“The labor market is still shaped by the economic slump of recent years,” Nahles said Friday as unemployment topped 3 million for the first time since February 2015.
Germany has been battling prolonged economic weakness, and pose a risk that it could be pushed into a third straight year without growth — something not seen in postwar history.
“The global economic uncertainties and Russia’s war of aggression against Ukraine are still leading to economic weakness,” said. “The cyclical headwinds continue to leave their mark on the labour market and require countermeasures.”
What do employers say?
Confederation of German Employers’ Associations chief Rainer Dulger said nearly three years of recession were now showing their effect on the labor market.
He called three million unemployed “a disgrace” and blamed political inaction, urging a “true autumn of reforms.”
The wider
After two consecutive years of recession, GDP shrank another 0.3% in spring. Industry in particular is struggling with high energy costs, while exports are under pressure from US tariff policies.
Machinery makers warn their US business is at risk. Many companies are responding with further layoffs.
Edited by: Rana Taha
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