German unemployment rate holds steady, better than forecasts

(Sharecast News) - The number of unemployed people in Germany rose by less than forecast last month, keeping the jobless rate unexpectedly steady, according to figures released by the government on Friday. Some 10,000 additional people were without a job in December, giving a total of 2.869m for the month, according to federal labour office data.

However, the consensus estimate was looking for 15,000 increase month-on-month.

As such, the jobless rate remained unchanged for the third straight month at 6.1%, surprising economists who had expected a tick up to 6.2%.

"The winter break on the labour market begins in December. As a result, unemployment and underemployment increased in December, as is usual for this month," said Andrea Nahles, head of the labour office.

Unemployment still remains at a close to a four-year high - having last touched the 6.1% level in February 2021 - after a steady rise from a near-decades-low 5% level in mid-2022. The average for 2024 as a whole was 6.0%, up from 5.7% the year before.

"Looking back, the ongoing economic downturn in 2024 has left increasingly deep marks on the labour market," Nahles said.