Germany's labour market showed virtually no improvement in February, with unemployment remaining stubbornly above three million for another month. The Federal Employment Agency reported the figures on Friday, while the German Trade Union Confederation declared the situation an "labour market crisis."
The number of unemployed people in Germany fell slightly by 15,000 compared to the previous month, bringing the total to 3,070,000. The unemployment rate dipped by 0.1 percentage points to 6.5 percent, though it remains 0.1 percentage points higher than the same month last year.
On a seasonally adjusted basis, the number of jobseekers actually increased by a minimal 1,000. Federal Employment Agency chief Andrea Nahles made clear that the figures offered little cause for optimism. "Even at the end of the winter break, the labour market is not picking up," she said. "Unemployment is barely changing and remains above three million."
Federal Labour Minister Bärbel Bas (SPD) acknowledged the difficult conditions weighing on the jobs market. "The difficult economic environment does not yet allow for a recovery in the labour market," she said. However, the minister pointed to the federal government's €500 billion investment package as a source of hope, saying Berlin is setting "a strong impulse to strengthen the economy and secure jobs."
Economic researcher Martin Müller from development bank KfW struck a cautious note on the timeline for improvement. "A decline in unemployment is not to be expected until the end of the year, when the economy has picked up further as expected," he said.
ING analyst Carsten Brzeski put the current situation in a broader context. "Over the past four years, unemployment in Germany has risen by around 500,000," he said, adding that this had been foreseeable "given the economy's stagnation for more than five years and serious structural challenges." Beyond the cyclical pressures, Brzeski also pointed to deeper structural forces at work.
The working-age population is shrinking due to demographic change. Digitalisation and technological progress are driving sectoral and geographical shifts in employment. And the spread of artificial intelligence is making it harder for young people to enter the workforce, he added.
The German Trade Union Confederation called on Chancellor Friedrich Merz (CDU) to make the labour market problems "an immediate priority at the highest level." "Far too few apprenticeship places for young people starting their careers are sending hundreds of thousands of under-25s into a downward spiral without a professional qualification. At the same time, skilled workers are lacking in many sectors," the confederation warned.
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