German unemployment stays above 3 million amid weak economy

Germany’s labour market remains under pressure, with unemployment staying above three million despite a slight monthly decline.

The report highlights the continuing challenges for Chancellor Friedrich Merz, whose government has pledged to revive growth after two years of economic contraction and faces several state elections starting next month, News.Az reports, citing Reuters.

• Total unemployed: 3.07 million (up 81,000 year-on-year)

• Seasonally adjusted: 2.977 million in February, up 1,000 from January

• Jobless rate: 6.3%, unchanged from previous month

“Even at the end of the winter break, the labour market is still struggling to gain momentum,” said labour office head Andrea Nahles.

Germany’s economy has effectively stagnated for more than five years, with industrial sectors facing structural challenges. Measures such as increased infrastructure and defence spending promised by Merz are yet to produce a noticeable effect on employment.

Analysts at ING THINK warned: “All in all, today’s labour market report sends a mixed message but definitely no signs of a turning point.”

Inflation in several German states fell below 2% in February, following a wider eurozone slowdown.

Real wages continued to recover, rising 1.9% in 2025 and 2.9% in 2024, but remain below 2019 levels due to pandemic and geopolitical shocks, including Russia’s invasion of Ukraine.

 

News.Az 

By Aysel Mammadzada