Germany’s unemployment and underemployment increased over the year in February 2024, according to the Federal Employment Agency. The Agency said the weak economic environment dampened the overall robust labour market.

When compared to February of last year, the number of unemployed is 194,000 higher to reach 2,814,000. When compared to January, unemployment rose by 8,000 in February 2024. Even seasonally adjusted, the number of unemployed people increased compared to the previous month, by 11,000.

The unemployment rate in February 2024 was 6.1%, steady from January. Compared to the same month last year, the rate increased by 0.4%.

Underemployment, which includes unemployment as well as labor market policy and short-term incapacity for work, rose by 15,000 in seasonally adjusted terms compared to the previous month. In February 2024 it stood at 3,643,000 people. This was also 161,000 more than a year ago. Furthermore, the agency highlighted that this figure included 37,000 citizens from Ukraine.

Meanwhile, according to the Federal Statistical Office, the number of employed people rose over the month by 54,000 in January 2024 on a seasonally adjusted basis. At 45.81 million people, it was 235,000 higher than the previous year.

Employment subject to social insurance contributions rose by 19,000 from November to December 2023, seasonally adjusted. When compared to the previous year, according to Federal Employment projections, the number of employees increased by 214,000 to 34.92 million in December, with the increase based solely on foreign nationals.

In February, 706,000 jobs were registered with the Agency, 72,000 fewer than a year ago. The job index, an indicator of the demand for personnel in Germany, which takes into account access in addition to the number of registered jobs, fell by 1 point to 114 points in February 2024. Compared to the same month last year, the Index recorded a decline of 12 points.