More than three million unemployed in Germany

The last time the unemployment rate in Germany was so high in August was 15 years ago. However, experts see the coming months with a mild optimism.

Unemployment in Germany has increased to more than three million people for the first time in the last ten years. The number of unemployed rose in August compared to last month by 46,000 to 3,025 million. This is 153,000 more than August 2024, the Federal Employment Agency announced. The unemployment rate rose compared to July of this year to 0.1 per cent, to 6.4 per cent.

The number of unemployed over the three million border was registered for the last time in February 2015.

Summer vacations do not explain development

The labour market is still marked by economic stagnation in recent years”, said Federal Employment Agency Director Andrea Nahles. “However, there are the first signs of stabilisation”, she adds.

The number of unemployed in Germany rises principledly during the summer because companies employ less before annual holidays. But the August figures were so high 15 years ago for the last time.

The three million unemployed are a shameful consequence of refusing to implement reforms in recent years”, said Rainer Dulger, president of the Confederate of German Employers' Associations. He stressed that a real wave of reforms is now needed in the autumn.

Will the job market be stabilised?

In a nationwide comparison, the unemployment rate in Bremen Lakes (11.8 per cent) and Berlin (10.5 per cent) is too high. While in southern banks, the unemployment figures are the lowest in Bhavari (4.2 per cent) and Baden-Wurttemberg (4.7 per cent). The Federal Employment Agency for Statistics used available data by 13 August. The data after 13 August will be processed in the official balance for this month, which takes place next month.

But despite these record new figures, the Institute for Labor Market Research and Professionals (IAB) sees the first signs of improving the situation. For their labour market barometer, experts survey all employment agencies every month regarding their expectations for the next three months.

In August, for the first time in the last three years, they expected unemployment to be halted. Also, according to these estimates, employment could again gain momentum.

Clemens Fuest, president of the Ifo Institute, recommends the federal government adopt countermass as soon as possible. “Policy must show that it is not only capable of borrowing, but also of implementing structural reforms that are difficult and cause conflicts”, Fuest said. If reforms succeed, private investments in Germany will increase again, and new jobs “will be opened with them, he says. / DW