Germany’s unemployment figure has risen above three million for the first time in more than a decade, reflecting ongoing challenges in Europe’s largest economy.
The Federal Employment Agency (BA) reported that unemployment increased by 46,000 in August to 3.025 million, raising the jobless rate to 6.4%.
Although seasonally adjusted data showed a small decline of 9,000 compared with July, unemployment was still up by 153,000 compared with last year.
Chancellor Friedrich Merz said the rise was expected but stressed that the government’s major investment plans must now deliver quick results.
BA chief Andrea Nahles partly attributed the increase to the summer lull, noting many firms delay hiring until after the holidays.
She warned, however, that years of weak growth continue to weigh on the labor market, even if “early signs of stabilization” are appearing.
Employers are expressing frustration. Rainer Dulger, head of the Confederation of German Employers’ Associations, called three million unemployed “a disgrace” and urged a “true autumn of reforms.”
Businesses, particularly manufacturers, remain under pressure from high energy costs and shrinking export opportunities.
Germany’s broader economy remains fragile. After two consecutive years of recession, GDP shrank another 0.3% in spring.
Russia’s war in Ukraine has fueled inflation and slowed growth, while U.S. tariffs under President Donald Trump are adding pressure to German exports.
Labor Minister Bärbel Bas said the market is still shaped by economic headwinds but insisted Germany has the resilience to recover.
Economists warn, however, that unemployment could remain high through winter unless confidence and reforms strengthen.