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Germany Faces Highest Unemployment in 12 Years

1/8/2026

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Story summary
  • In 2025 Germany posted its highest unemployment rate in twelve years, with 2.948 million jobless people, per the labour office.
  • The unemployment rate reached 6.3% in 2025, up from 6.0% in 2024.
  • Andrea Nahles, head of the German Labour Office, warned that 2026 will be challenging, with only a slight easing expected mid-year.
  • A shortage of skilled workers persists.
  • The potential labour force is projected to decline by 40,000 due to demographic factors.