German unemployment tops three million for first time since 2015

Wednesday, September 3, 2025 

Germany

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Preliminary data released on Friday by Germany‘s labour market agency, Bundesagentur für Arbeit (BA), showed that the national unemployment rate reached 6.4% (or 3.025 million people) in August, up 0.1% from last month. This milestone marks the first time since February 2015 that the three-million mark was reached, according to Deutsche Welle.

According to RTÉ, the seasonally adjusted unemployment rate remained at 6.3% (2.96 million), decreasing by 9,000 from July. Compared to the previous August, the number of unemployed increased by 153,000, or 0.3%. BA’s broader underemployment figure – encompassing both unemployment and short-term work incapacity – stood at 3.634 million, representing an increase of 25,000 from August 2024. The inflation rate rose to 2.1% in August, exceeding the 2.0% estimated by analysts, according to CNBC.

The labour demand in the primary market has been in decline, with 631,000 job openings reported to the agency in August, 68,000 fewer than the same month last year. The monthly Federal Employment Agency Job Index (BA-X), an indicator of labour market demand according to the Bundesagentur für Arbeit, remained unchanged at 98 points.

In a press statement published on Friday, BA director Andrea Nahles stated that the labour market bore the brunt of consecutive years of economic contraction, but that it is beginning to show tentative signs of stabilisation. She also said the figures reflect the struggles faced by the manufacturing sector. According to a report released by professional services firm EY, the car industry alone lost 110,000 jobs in the last 12 months, France 24 reported. Nahles said she expects the typical seasonal recovery in September to improve the situation but cautioned the number of unemployed could again exceed three million during the winter.

• Richard Connor, Rana Taha. German unemployment rises above 3 million — Deutsche Welle, August 29, 2025
• Arbeitsmarkt im August 2025 — Bundesagentur für Arbeit, August 29, 2025 (German)
• Reuters. Number of unemployed people in Germany passes 3 million mark — RTÉ, August 29, 2025
• Agence France-Presse. German unemployment tops 3 million, highest for a decade — France 24, August 29, 2025
• Sophie Kiderlin, Ruxandra Iordache. Higher inflation and unemployment cast shadow over Europe’s biggest economy — CNBC, August 29, 2025
  

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