German Unemployment Hits Decade High
2025-01-31
Germany's unemployment rate surged to a decade high in January, reaching almost three million, a figure not seen since 2015. This represents a significant increase of 187,000 compared to January 2024, sparking concerns about the German economy. Employers attribute the rise to various headwinds hindering economic growth, including bureaucracy, high non-wage labor costs, and energy prices. The Mechanical Engineering Industry Association reported that a quarter of its member companies plan job cuts in the next six months. Adding to the gloom, retail sales unexpectedly fell by 1.6% in December.