German Unemployment Rose Less Than Expected in December
(Bloomberg) -- German unemployment increased less than anticipated, suggesting the labor market is weathering the latest economic rough patch.
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Joblessness rose by 10,000 in December, while economists polled by Bloomberg had predicted an increase of 15,000. The unemployment rate held at 6.1%, the Federal Labor Agency said Friday in a statement.
“2024’s ongoing economic downturn has left increasingly deep marks on the labor market,” said Andrea Nahles, head of Germany’s Federal Labor Agency. “But all in all, it has continued to hold its ground.”
The data come as Chancellor Olaf Scholz prepares for snap elections on Feb. 23. The jobs market has been one of the few resilient parts of an economy that contracted in 2023 and 2024 and is expected to expand just 0.2% this year.
Scholz’s SPD is faring particularly poorly in eastern Germany, where unemployment is generally higher than in the western states.
Meanwhile, German companies are finding it hard to attract the staff they need, according to the DIHK Chambers of Industry and Commerce, whose December report showed about 43% of firms are struggling to fill vacancies due to an acute skilled labor shortage.
--With assistance from Kristian Siedenburg and Harumi Ichikura.
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