Germany’s unemployment rises to 2.87 million

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The number of unemployed in Germany has risen for the longest stretch since reunification, reaching a staggering 2.87 million in December 2024. This troubling trend is unfolding during what should be relatively stable economic times, raising serious concerns about the future of German society as it braces for the next recession.

The situation in Germany is dire. The unemployment rate has remained steady at 6.1% in December 2024, slightly below market expectations but still near its highest level since February 2021. The number of unemployed persons increased from 2.86 million in November to 2.87 million in December. This marks the longest continuous rise in unemployment since the country’s reunification, highlighting the deep-seated issues within the German economy.

Germany’s economy is expected to contract for an unprecedented third consecutive year in 2025, with a forecasted 0.1% decline in GDP. This follows contractions of 0.3% in 2023 and 0.2% in 2024, marking the longest economic downturn in Germany’s post-war history. The combination of high energy costs, competition from China, and trade uncertainties has created a perfect storm, leaving the German economy in a precarious state.

The ongoing economic crisis has led to a significant increase in unemployment, with the number of jobless Germans now at levels seen during the peak of the COVID-19 pandemic. The manufacturing sector, a cornerstone of the German economy, has been hit particularly hard. Factory activity levels slumped in November 2024, with new orders falling by 5.4% between October and November. This decline in demand for manufactured goods has had a ripple effect, leading to job losses and further economic instability.

The connection between the economic downturn and Germany’s shift toward green policies is clear. The push for green initiatives and the transition to a low-carbon economy have placed significant burdens on German industries. High energy costs, driven by the shift away from fossil fuels, have made it difficult for businesses to remain competitive. The automotive industry, in particular, is struggling with the transition to electric vehicles, leading to reduced demand for steel and other materials. This has resulted in thousands of job losses and weakened the industrial sector, compounding the economic challenges facing Germany.

Number of unemployed in Germany has risen for the longest stretch since the reunification, and this during good times. Most Germans don’t understand yet, what will happen to their society during next recession. But why don’t you vote for four more years of Green Economic Wonder?… pic.twitter.com/NVcd2YVyBE

— Michael A. Arouet (@MichaelAArouet) January 9, 2025