German unemployment ticks upward toward 10 year high
The last time Germany had three million unemployed was more than 10 years ago. And some labour market experts predict that next month Germany will reach that number again.
The Federal Employment Agency (
Bundesagentur für Arbeit
) reported 65,000 more people were unemployed this month than last, bringing the total number to 2.979 million.
July's unemployment figure was 6.3 percent, representing an increase of .1 percentage points since June.
That's a smaller increase than had been expected. But concerns persist about economic conditions in Germany.
The city-states of Bremen and Berlin continued to lead unemployment figures, at 11.8 percent and 10.3 percent unemployed respectively.
Bavaria had the lowest rate of unemployment at just four percent.
Germany's unemployment rate this month was similar to the aggregate number across the Eurozone. Numbers published by Eurostat on Thursday showed that the unemployment rate across the 20 countries that use the Euro was 6.2 percent.
However, the unemployment rate across the 27 countries that make up the EU was lower, at 5.9 percent.
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How generous is Germany's unemployment benefit system?
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One significant factor in the rise in unemployment in July was likely the start of summer break. The seasonally-adjusted increase in the number of unemployed individuals in Germany was 2,000, according to the Federal Employment Agency.
"Unemployment has risen due to the beginning of the summer break. Companies remain very reluctant to report new vacancies, and employment subject to social insurance contributions is barely increasing," said Andrea Nahles, the chair of the Board of the Federal Employment Agency, at a press conference in Nuremberg on Thursday.
Still, experts say larger economic factors are also at play. Germany has experienced a
general economic contraction
over the last two years, and unemployment numbers are projected to continue to rise in the coming months.
Though the outlook for next month isn't particularly optimistic, there is some hope for recovery in the future. Projections published by the European Commission predict a general economic stagnation in 2025, followed by growth in 2026, including a declining unemployment rate.
READ ALSO:
Kitas and Deutschlandticket - What Germany plans to spend money on in 2026
Compared to July 2024, there are now 171,000 more unemployed people in Germany, representing an increase of .3 percentage points.
The Federal Employment Agency reported that in July there were 628,000 job vacancies, 75,000 fewer than a year ago.
Since last October, 414,000 young people applied through employment agencies for places in training programs, which was 12,000 more than in the previous year. As of July, 140,000 still did not have a place in a training program.
The Federal Employment Agency also reported a 7.6 percent increase in underemployment in July compared to the previous month.
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'Don't lose hope' - How to navigate Germany's painful job market
In July, 991,000 people received unemployment benefits, and 3.877 million people of working age were eligible for citizen's income, or
Bürgergeld
. Individuals are eligible for citizen's income even if they are employed, if their income is not enough to cover their expenses.
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Local Germany
a day ago
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German unemployment ticks upward toward 10 year high
Nearly three million people in Germany were unemployed in July, according to numbers published by the Federal Employment Agency on Thursday. The last time Germany had three million unemployed was more than 10 years ago. And some labour market experts predict that next month Germany will reach that number again. The Federal Employment Agency ( Bundesagentur für Arbeit ) reported 65,000 more people were unemployed this month than last, bringing the total number to 2.979 million. July's unemployment figure was 6.3 percent, representing an increase of .1 percentage points since June. That's a smaller increase than had been expected. But concerns persist about economic conditions in Germany. The city-states of Bremen and Berlin continued to lead unemployment figures, at 11.8 percent and 10.3 percent unemployed respectively. Bavaria had the lowest rate of unemployment at just four percent. Germany's unemployment rate this month was similar to the aggregate number across the Eurozone. Numbers published by Eurostat on Thursday showed that the unemployment rate across the 20 countries that use the Euro was 6.2 percent. However, the unemployment rate across the 27 countries that make up the EU was lower, at 5.9 percent. READ ALSO: How generous is Germany's unemployment benefit system? Advertisement One significant factor in the rise in unemployment in July was likely the start of summer break. The seasonally-adjusted increase in the number of unemployed individuals in Germany was 2,000, according to the Federal Employment Agency. "Unemployment has risen due to the beginning of the summer break. Companies remain very reluctant to report new vacancies, and employment subject to social insurance contributions is barely increasing," said Andrea Nahles, the chair of the Board of the Federal Employment Agency, at a press conference in Nuremberg on Thursday. Still, experts say larger economic factors are also at play. Germany has experienced a general economic contraction over the last two years, and unemployment numbers are projected to continue to rise in the coming months. Though the outlook for next month isn't particularly optimistic, there is some hope for recovery in the future. Projections published by the European Commission predict a general economic stagnation in 2025, followed by growth in 2026, including a declining unemployment rate. READ ALSO: Kitas and Deutschlandticket - What Germany plans to spend money on in 2026 Compared to July 2024, there are now 171,000 more unemployed people in Germany, representing an increase of .3 percentage points. The Federal Employment Agency reported that in July there were 628,000 job vacancies, 75,000 fewer than a year ago. Since last October, 414,000 young people applied through employment agencies for places in training programs, which was 12,000 more than in the previous year. As of July, 140,000 still did not have a place in a training program. The Federal Employment Agency also reported a 7.6 percent increase in underemployment in July compared to the previous month. Advertisement READ ALSO: 'Don't lose hope' - How to navigate Germany's painful job market In July, 991,000 people received unemployment benefits, and 3.877 million people of working age were eligible for citizen's income, or Bürgergeld . Individuals are eligible for citizen's income even if they are employed, if their income is not enough to cover their expenses.
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