Unemployment Rate Rises Sharply in January, Approaching Three Million

The unemployment rate in Germany has seen a significant increase in January, with the number of jobless individuals rising by 186,000 compared to the previous month. The total now stands at 2.993 million, just below the three million mark, and an increase of 187,000 compared to January 2024. The unemployment rate has climbed by 0.4 percentage points to reach 6.4 percent, according to the Federal Employment Agency in Nuremberg.

This uptick in unemployment is typical for this time of year, as many temporary contracts conclude at the end of the year, coupled with the seasonal reduction of jobs, particularly in weather-dependent sectors like construction. It is expected that February may show a stabilization in the figures, with a potential for a seasonal recovery beginning in March.

Andrea Nahles, the CEO of the Federal Employment Agency, noted that the rise in unemployment and underemployment at the start of the year is a common occurrence. She emphasized that while employment growth is continuing, it is gradually losing momentum.

Moreover, the incidence of short-time work has also seen a notable rise. Recent estimates indicate that 293,000 employees were receiving short-time work benefits in November, compared to 263,000 in October and 221,000 in September. Although more recent data is not yet available, companies reported short-time work for 54,000 individuals between January 1 and January 27, although it remains uncertain how many will actually utilize these benefits.

In terms of job availability, the demand for workers has decreased. As of January, there were 632,000 job openings registered with the Federal Employment Agency, marking a reduction of 66,000 compared to the same month last year. On the vocational training front, there were still 33,000 applicants seeking apprenticeship positions without placement, while 20,000 were looking for better alternatives. At the same time, 15,000 apprenticeship positions remained unfilled.