German unemployment rate hits four-year high

(Sharecast News) - The unemployment rate in Germany has risen to its highest in more than four years with manufacturing layoffs partly to blame, according to government statistics on Friday. The number of people registered as unemployed increased by 11,000 to 2.88m in December on a seasonally adjusted basis.

While this was less than the 14,000 increase expected by economists, the jobless rate still increased to 6.2% from 6.1%, marking the highest rate since October 2020.

"Unemployment and underemployment increased significantly at the start of the year, as is usual for this month," said Andrea Nahles, head of Germany's labour office.

A number of large manufacturers have announced job cuts in recent months, including Volkswagen, Bosch and Thyssenkrupp, which is thought to have contributed to the increase.

As such, it is estimated that the number of unemployed could surpass 3m in the coming months, reaching a level not seen since 2011.