German unemployment nears 3 mn as economic woes weigh 

BSS
Published On: 31 Jan 2025, 21:06

FRANKFURT, Germany, Jan 31, 2025 (BSS/AFP) - The number of unemployed in Germany rose to almost three million in January, official data showed Friday, in a further sign of weakness for Europe's beleaguered top economy.

The jobless rate ticked up to 6.2 percent on a seasonally adjusted basis, with 11,000 more people out of work than in December, after holding steady for several months, the Federal Employment Agency said.

A total of 2.99 million people were unemployed, the data showed.

Agency chief Andrea Nahles said it was normal to see a rise in joblessness at the start of the year but also warned that employment was "increasingly losing momentum".

Martin Mueller, from KfW Research, said the "labour market remains weak at the turn of the year".

"The structural problems of the economy and the gloomy mood among companies and consumers do not suggest that any significant recovery can be expected in the current year either," he warned.

The German economy, the eurozone's traditional growth engine, shrank the last two years as it battles a manufacturing slowdown, high energy costs and weak demand for its crucial exports.

Many companies, from the auto sector to banks, have been announcing job cuts as they seek to reduce costs.

The economic problems have been worsened by political turbulence with the country heading for a snap general election in February after Chancellor Olaf Scholz's coalition collapsed.

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