Unemployment rate rise in Germany during December

Data from the German Labor Office showed on Wednesday that the number of unemployed people in Germany rose slightly in December, but at a rate much lower than analysts’ expectations, and the rate for 2023 was one of the lowest rates since German reunification.

According to Reuters, the Federal Employment Agency said that the number of unemployed people rose by 5,000 people at a seasonal rate to reach 2.703 million. Analysts polled by Reuters had expected the total number to rise by 20,000

“The labor market is still holding up well in terms of the amount of burdens and uncertainties,” said Andrea Nahles, head of the agency.

The seasonally adjusted unemployment rate rose slightly in December to 5.9 percent

“Looking to 2023, we can see that the weak economy did not leave the labor market unscathed,” Nahles said, noting that the year witnessed one of the lowest unemployment rates since the country’s reunification.

The number of unemployed people in Germany increased by 191,000 to 2.6 million in 2023 compared to the previous year.

Labor demand declined significantly in the second half of 2022 and this trend continued in 2023. However, labor demand remains high by comparison in the long term.

The agency said that in 2023, there were an average of 761,000 job opportunities, that is, 84,000 fewer jobs than the previous year.