Germany's unemployment rate hits 6.3%, much higher than expected

The German labor market remained under pressure as the unemployment rate rose significantly in March, recording the largest monthly increase since October 2024.

The number of unemployed rose by 26,000 in seasonally adjusted terms to 2.92 million, the Federal Labor Office reported, more than double the forecast of analysts, who had expected an increase of only 10,000.

The seasonally adjusted unemployment rate rose to 6.3%, up from 6.2% the previous month, also above market expectations.

The German economy has been in recession for two consecutive years and is still facing difficulties, especially in the industrial production sector.

The US announced a 25% tax on imported cars. Photo: GI

The Labor Department report also showed that job vacancies fell sharply to 643,000 in March, down 64,000 from a year earlier, reflecting weakening demand for workers.

For the past decade, unemployment in Germany has remained below 3 million people, but current trends suggest that this could soon change.

Germany's economic woes are most evident in the auto industry, where major corporations such as Volkswagen have been forced to cut jobs due to falling demand.

Pressure continued to mount as US President Donald Trump recently announced a 25% tariff on imported cars, a policy that is expected to negatively impact German automakers.

“If this policy remains unchanged, the negative impact on consumer confidence and employment in the auto industry and related sectors will be severe,” said an economist.

Last week, Germany’s parliament approved a major fiscal overhaul and the largest postwar spending package in the country’s history, aimed at boosting the economy and boosting defense spending. But economists warn that the recovery could take time to show results.

Ha Trang (according to DW)

Source: https://www.congluan.vn/ty-le-that-nghiep-tai-duc-dat-63-cao-hon-nhieu-so-voi-du-bao-post340636.html