Germany’s job market is facing increasing challenges as unemployment rises amid an economic slowdown. Recent data shows a significant jump in jobless figures, alongside a drop in available positions, as inflation and high energy prices weigh on the economy.
Germany’s job market is feeling the pressure of an ongoing economic slowdown, with unemployment on the rise. Recent figures from the country’s Federal Employment Agency reveal that the number of unemployed people increased by 33,000 in December, bringing the total to 2.8 million. This marks a rise of 170,000 compared to the same time last year.
Along with the higher unemployment numbers, there has been a noticeable drop in available jobs. By December, there were around 654,000 vacant positions, down by 59,000 compared to the previous year.
Andrea Nahles, head of the Federal Employment Agency, said that while unemployment typically rises during the winter months, the broader economic conditions are making things harder. “As expected, we saw more unemployment and part-time work in December, but the current economic situation is making this worse,” Nahles explained.
Germany’s economy shrank by 0.3% in 2023, hit by rising inflation, high energy prices, and falling investment. The German Central Bank expects a further contraction of 0.2% in 2024, driven by concerns like trade protectionism and geopolitical risks.
Despite these challenges, the total number of employed people in Germany reached 46.1 million in 2023, the highest level since the country’s reunification in 1990. However, experts predict that unemployment will continue to rise, with the number of jobless potentially exceeding 3 million in the months ahead, marking the first time in a decade.
