German unemployment rate sees small rise in December
January 3, 2025
Germany has seen a slight increase in the number of unemployed people, with the figure of those without work rising by 0.1% in December when compared to November.
"In December, the winter break begins in the job market. As a result, unemployment and underemployment have increased in December, as is usual for this month," the Federal Employment Agency's (BA) chairwoman, Andrea Nahles, said in Nuremberg.
The unemployment rate now stands at 6.0% as of December 2024 in comparison to 5.7% during the same time in 2023, according to the office.
The seasonally-adjusted unemployment figure increased by 10,000 people in December from November, still less than the 15,000 analysts had predicted in a poll conducted by Reuters news agency.
"Looking back, the ongoing economic downturn in 2024 has left increasingly deep marks on the labor market," said Nahles.
The BA said there were 654,000 job openings in December, 59,000 fewer than a year ago, indicating a slowdown in labor demand.
More people working reduced hours
The BA also reported that there were more people working reduced hours under a state wage subsidy program known as "Kurzarbeit," or short-time work.
In Germany, employees in the private sector may have to accept reduced working hours, with the government helping to replace the lost wages with public money, according to the scheme.
The latest figures showed that the annual average number of short-time workers in 2024 was around 320,000, compared to 241,000 in 2023.
The agency said this equaled an average loss of work of around 28%.
Reduced working hours had, however, secured jobs for around 90,000 employees and prevented their unemployment, the agency noted.
Germany's economy has faced a decline in industrial orders due to the impacts of the COVID-19 pandemic and Russia's war in Ukraine.
The country has been struggling to turn around its beleaguered economy, which continues to grow slower than expected.
kb/wd (dpa, Reuters)