German unemployment climbs in May ’25

Germany’s unemployment rose more sharply than expected in May, with 34,000 more people out of work, pushing the seasonally adjusted jobless total to 2.96 million, Reuters reported, citing the Federal Labour Office on Wednesday.

The increase, well above the 10,000 rise forecast by analysts in a Reuters poll, brings the number of unemployed close to the 3 million mark for the first time in a decade, as Europe’s largest economy struggles to recover from a prolonged downturn.

The jobless rate held steady at 6.3 per cent in May, the highest level since December 2015 when excluding the pandemic period.

“The labour market is not getting the tailwind it needs for a trend reversal,” said labour office head Andrea Nahles, warning that unemployment is likely to rise further during the summer.

Labour demand also showed signs of weakening, with 634,000 job openings in May—down by 67,000 compared to a year earlier.

The economic stagnation has added to pressure on Chancellor Friedrich Merz, who has promised to end two years of decline.

Fresh tariffs imposed by US President Donald Trump threaten to deepen the crisis, potentially pushing Germany into its third consecutive year of recession—something not seen in the post-war era.

Attribution: Reuters

Subediting: Y.Yasser