German Unemployment Rises to 6.3% Amid Economic Struggles

Germany's unemployment rate rose unexpectedly in March, with 26,000 more people out of work, bringing the total to 2.92 million and the jobless rate to 6.3%, slightly above forecasts. This increase marks the fastest rise in unemployment since October 2024, as the country grapples with economic difficulties and a sluggish labor market. Analysts had anticipated a smaller increase of only 10,000 unemployed. Andrea Nahles, head of the labor office, attributed the slow recovery typically seen in spring to ongoing economic challenges and structural issues in various industries, particularly the auto sector. The number of job openings also fell, reflecting a decrease in labor demand, with 643,000 positions available in March, down 64,000 from the previous year. The situation is further complicated by external factors, including a recent U.S. tariff on imported vehicles, impacting consumer confidence and job prospects.