In Germany, the unemployment rate rose to the highest in 12 years

In January 2026, the number of unemployed in Germany exceeded 3 million people, which is 177 thousand more than in December 2025. The unemployment rate rose to 6.6%, which is the highest in the last 12 years. This was reported on January 30 by the Tagesspiegel newspaper.

"There is currently little momentum in the labor market. At the beginning of the year, the unemployment rate rose significantly for seasonal reasons and again exceeded the three million mark," said Andrea Nahles, chairman of the Federal Employment Agency.

The article notes that it is becoming increasingly difficult for the unemployed to find a new job. The number of vacancies registered with employment agencies decreased to 598,000, which is 34,000 fewer than in 2025.

The author of the article clarifies that about 41 thousand young people studying at universities or colleges could not find an internship in January 2026.

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The Financial Times newspaper noted on January 15 that the German economy in 2025 showed growth for the first time since 2022, but it was only 0.2% amid the country's attempts to recover from prolonged stagnation and economic crisis. Ulrich Kater, chief economist at German bank DekaBank, said that from an economic point of view, 2025 was another lost year for Germany.

Alice Weidel, co-chair of the Alternative for Germany (AfD) opposition party, said on January 13 that the accelerating increase in the number of bankruptcies in Germany, including among large enterprises, could lead to the collapse of the German economy.

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