Investing.com — Germany’s unemployment rate remained stable at 6.1% in December, according to data released by the Federal Employment Agency on Friday. This figure came in slightly lower than the 6.2% predicted by economists surveyed by The Wall Street Journal.
While the jobless rate has held steady, there are signs of a potential slowdown in the labor market. The number of jobless claims increased by 10,000 on an adjusted basis in December, a significant rise from the 6,000 reported in November.
Furthermore, the number of registered job vacancies was around 654,000, a decrease of approximately 59,000 compared to the same period the previous year.
Several major industrial companies, including Thyssenkrupp (ETR:TKAG), Bosch (NS:BOSH), and Schaeffler, have recently announced or hinted at widespread job cuts. This comes as Europe’s largest economy continues to struggle with manufacturing challenges.
Volkswagen (ETR:VOWG_p), the auto giant, reached an agreement with labor unions last month to avoid immediate layoffs and factory closures in Germany. However, the company still plans to reduce its workforce by 35,000 in the coming years.
The unemployment rate in Germany has increased slightly from around 5% in 2022. The current rate is on par with the early 2021 levels when the economy was still reeling from the impact of the pandemic.
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