German unemployment rises less than expected in December, labour office says By Reuters

BERLIN (Reuters) – The number of people out of work in Germany rose less than expected in December, data from the federal labor office showed on Friday.

The office said the number of unemployed rose by 10,000 in seasonally adjusted terms to 2.87 million.Analysts polled by Reuters had expected a rise of 15,000.

“The winter break in the labor market begins in December. As a result, unemployment and underemployment increased in December, as is usual for this month,” said the head of the labor office, Andrea Nales.

Due to the poor economic outlook, the number of unemployed is expected to continue to rise this year, surpassing the 3 million mark for the first time in 10 years in early 2025.

The average unemployment rate rose to 6.0% in 2024 from 5.7% in 2023, according to the bureau.

“In retrospect, the ongoing recession in 2024 has left an increasingly deep mark on the labor market,” Nales said.

The seasonally adjusted employment rate remained steady at 6.1%.

654,000 jobs were created in December, down 59,000 from a year earlier, indicating a slowdown in labor demand, the Federal Labor Office said.