The unemployment rate in Germany climbed to 6.0 percent in 2024, an increase of 0.3 percentage points compared to the previous year. The Federal Employment Agency (BA) recorded an increase in the unemployed by 178,000 to a total of 2.787 million. "The economic stagnation is leaving increasingly deep marks on the labor market," said BA head Andrea Nahles.

Short-time work also increased significantly. The number of short-time workers rose, according to BA estimates, from 241,000 in 2023 to about 320,000 in 2024. In October 2024 alone, 287,000 employees received economic short-time work benefits, compared to 225,000 in September and 165,000 in August.

In December 2024, the BA registered a further increase in the number of unemployed by 33,000 to 2.807 million, which also corresponded to a rate of 6.0 percent. Seasonally adjusted, unemployment increased by 10,000 people, while the demand for labor noticeably declined. In December, 654,000 job vacancies were reported, 59,000 fewer than in the same period of the previous year.

The winter break exacerbated the negative developments. "In December, unemployment and underemployment increased as usual," said Nahles. Fixed-term contracts expired, and employment decreased in weather-dependent industries such as construction. Nevertheless, the seasonally adjusted increase in unemployment shows that structural problems burden the labor market.