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Germany unemployment rises above 3 million as labour market slows

Published on: January 31, 2026 4:51 PM

German unemployment rises above 3 million - The Times of India

The number of unemployment in Germany rose above 3 million in January, official figures showed on Friday, underscoring weakening momentum in Europe’s largest labour market.

According to the Federal Employment Agency, 3.085 million people were registered as unemployed last month, an increase of 177,000 compared with December and 92,000 more than in January 2025. The unemployment rate climbed by 0.4 percentage points to 6.6%.

Read More: German unemployment hits new low 

The January figure marks the highest level for the month since 2014, while total unemployment last exceeded the 3 million threshold in August for the first time in more than a decade. Officials said the increase was largely driven by seasonal factors but acknowledged broader economic headwinds.

“There is currently little momentum in the labour market,” said Andrea Nahles, chairwoman of the Nuremberg-based Federal Employment Agency. “At the beginning of the year, unemployment rose significantly for seasonal reasons, exceeding the 3 million mark once again.”

Signs of softening labour demand were also evident in job vacancy data. The number of vacancies registered with employment agencies fell to 598,000 in January, down 34,000 from a year earlier, suggesting employers are becoming more cautious amid economic uncertainty.

The agency reported that 1.142 million people received unemployment benefits in January. These benefits are typically paid for up to two years following job loss, depending on an individual’s employment history.

Read More: German economy stagnates, teeters on brink of recession

In addition, 3.826 million people received Germany’s citizen’s benefit, a welfare payment that supports unemployed individuals as well as low-income workers who rely on social assistance to supplement their earnings.

The data also highlighted challenges facing younger job seekers. Around 64,000 young people were registered with employment agencies as seeking an apprenticeship in January, reflecting ongoing difficulties for some school leavers entering the labour market.

Filed Under: Top Stories, World Tagged With: European economy, Federal Employment Agency, Germany economy, labour market, Latest, unemployment rate

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