Germany's labor market posts worst December figures since 2010

BERLIN

The number of unemployed workers in Germany rose by 23,000 in December, compared to the previous month, due to the weak economy and winter holidays, with the labor market seeing its worst December figures since 2010, German Federal Employment Agency data showed Wednesday.

The data said the unadjusted number of unemployed rose 23,000 in December compared to November, to 2.9 million.

The increase occurred due to the labor market struggling to recover from a weakening economy and the winter holidays before Christmas and the New Year.

Market expectations about unemployed workers in December were at 5,000.

The unadjusted unemployment rate rose by 0.1 percentage points to 6.2%, while unfilled positions fell by 35,000, compared to the same month last year, reaching 619,000.

2025 average

The average unemployment figure for last year rose 161,000 to 2.95 million.

The average unemployment rate, which was 6% in 2024, rose to 6.3% last year.

In 2025, the average number of vacant positions at companies fell by 62,000 compared to the previous year to 632,000.

Carsten Brzeski, head of Global Macro Research at ING and chief economist for Germany, stated in his analysis that Germany's labor market recorded its worst December figures since 2010.

Arguing that the labor market continues to deteriorate, Brzeski said unemployment rose 23,000 to 2.9 million, reaching its highest for December since 2010.

Brzeski reported that the number of unemployed increased by approximately 500,000 over the past four years, stating that the gradual deterioration reflects the economic theory found in textbooks.

The economy has been stagnant for more than five years, and with industry facing serious structural challenges, the deterioration in the labor market was inevitable, he said.