The number of unemployed people in Germany has surpassed three million, reaching the highest level since 2015, underscoring the deepening challenges facing Europe’s largest economy.
Germany’s economy has been struggling after three consecutive years of contraction. Chancellor Friedrich Merz recently acknowledged the difficulties, warning that the country is going through one of its toughest economic periods in recent history.
Due to the ongoing downturn, unemployment in August rose to 3.02 million people, representing 6.4% of the labor force. It is the first time since 2015 that unemployment has climbed to this level.
In 2023, the German economy shrank by 0.3%, followed by a 0.2% decline in 2024. This year, it has already contracted by 0.3% in both the first and second quarters, largely due to U.S. tariff hikes.
Rising production costs have further strained the economy. Germany, which once relied on Russia for 55% of its gas supply, has faced soaring energy prices since the cutback.
The automotive industry long a cornerstone of Germany’s economic strength has been hit especially hard amid fierce competition from countries like China. Recently, car manufacturers announced the layoff of more than 51,000 workers.
Author: Justinmind HARERIMANA
