Unemployment Rate in Germany Hits Highest in a Decade

Darwin, August 31 — Germany, Europe’s economic powerhouse, has seen its unemployment figures surpass 3 million for the first time since 2015, which accounts for 6.4% of the country’s total population.

This information was reported by the Russian news outlet RT, citing Germany’s Federal Employment Agency.

According to the agency’s head, Andrea Nahles, the country’s economic downturn is to blame for the problems in the labor market.

In 2024, Germany’s economy contracted by 0.2%, following a contraction of 0.3% in 2023.

The country’s economy showed a slight rebound in the first quarter of this year, with a 0.3% growth. However, due to uncertainties stemming from new U.S. tariff policies, the economy contracted again by 0.3% in the second quarter.

In August, unemployment rose by 46,000 compared to July.

The International Monetary Fund (IMF) has recently warned that Germany’s economy will see no growth for the third consecutive year.

Several international news outlets are attributing the current situation to the conflict between Ukraine and Russia. Following the disruption of Russian pipeline supplies and the destruction of the Nord Stream pipelines, the price of European gas has surged.

Germany used to import 55% of its gas from Russia, but it is now forced to import more expensive liquefied natural gas (LNG) from the U.S. and Qatar.

German Chancellor Friedrich Merz acknowledged last week that the country is facing a “structural crisis” rather than a temporary economic slump. Achieving economic growth has become much more difficult than anticipated.

He stated, “The country’s automobile industry is no longer truly competitive.”

Recent data shows that over 51,000 jobs have been lost in Germany’s automobile sector over the past year.