The number of unemployed in Germany rose to 2.908 million in December, with the rate reaching 6.2 percent. The Federal Employment Agency anticipates recovery only from mid-2026, amid economic slowdown and demographic changes. Head Andrea Nahles warns of challenges despite potential economic upturn.
In December 2025, the number of unemployed in Germany increased by 23,000 to 2.908 million, according to the Federal Employment Agency in Nuremberg. The unemployment rate rose by 0.1 points to 6.2 percent; data covers reports up to December 11. This year-end rise is seasonally typical due to winter slowdowns and fewer hires in sectors like construction and agriculture.
Compared to December 2024, 101,000 fewer people were unemployed; the figure is the highest since December 2010 with 3.012 million. Among federal states, Bavaria had the lowest rate at 4.0 percent, Bremen the highest at 11.2 percent. Andrea Nahles, the agency's head, stated: "Under the bottom line, it stands weaker than a year ago." The ongoing economic weakness led to rising unemployment and underemployment for the third consecutive year.
The German Trade Union Confederation emphasized: "The labor market currently lacks tailwind" and called for smart economic policy involving social partners. Jobs were lost in industry, while employment grew in public service and health sectors, but only part-time. Socially insured employees stood at around 35 million in October, unchanged from the previous year. Open positions fell to 619,000, 35,000 fewer than in 2024; Nahles said: "In the expiring year, so few new positions were reported to us as never since the turn of the millennium."
Job prospects are worse for low-skilled workers (rate at 21 percent) than for academics (3 percent); 80 percent of vacancies are for specialists. Short-time work increased: In October, 203,000 employees received benefits, and in December, 41,000 were announced. Nahles sees the trough reached and recovery possible from mid-2026 if the economy picks up: "If the economy gains momentum, the labor market will recover with a time lag." Demographic change will reduce the workforce by 40,000 in 2026; Nahles warned: "Despite the current labor market situation, the shortage of skilled workers in many sectors will continue for this reason too." She described 2026 as "a year of light and shadow" due to transformation and uncertainties.
