Germany’s unemployment rate edged higher at the close of 2025, with the Federal Employment Agency (Bundesagentur für Arbeit) reporting an increase of 23,000 to a total of 2,908 million unemployed individuals in December. This represents a rise of 101,000 compared to December 2024, and brings the unemployment rate to 6.2 percent.
Rising Unemployment Figures
The December increase brings the total number of unemployed individuals to 2,908 million, a level not seen since December 2010 when 3,012 million people were without jobs. The unemployment rate rose by 0.1 percentage points compared to November, according to the Bundesagentur für Arbeit in Nürnberg.
BA Chief Andrea Nahles attributed the increase to a lack of economic momentum. She noted that unemployment typically rises in December as companies tend to reduce hiring before year-end, and seasonal jobs in sectors like construction and agriculture decline during the colder months.
Year-End Trends and Potential Turning Point
Throughout 2025, the German labor market experienced a noticeable downturn. The annual average saw 2,948 million people registered as unemployed, a 161,000 increase from 2024. This marks the highest annual figure recorded since 2013, with the average unemployment rate climbing to 6.3 percent.
“In 2025, the labor market developed gradually in an unfavorable direction,” Nahles explained. “Overall, it is weaker than a year ago. However, there are indications that we have reached the bottom.”
Frequently Asked Questions
What was the unemployment rate in Germany in December 2025?
The unemployment rate in Germany in December 2025 was 6.2 percent, according to the Bundesagentur für Arbeit.
How does the current unemployment rate compare to previous years?
The current rate is higher than in December 2024, but lower than in December 2010, when the unemployment rate was higher with 3,012 million people without a job.
What factors contributed to the increase in unemployment?
According to the Bundesagentur für Arbeit, the increase is due to a lack of economic momentum, typical seasonal factors, and reduced hiring activity at the end of the year.
As the German labor market navigates these challenges, will the anticipated stabilization hold, or could further economic headwinds lead to additional increases in unemployment in the coming months?
